Brazil’s Finance Minister copies Argentina’s economic model
The Minister of Finance, Fernando Haddad, announced on Tuesday (28) the return of the partial tax burden on gasoline and ethanol.
Despite winning the arm wrestling with the political wing of the government, the minister “made a big mistake” by copying a failed economic model from Argentina.
To avoid a loss in tax collection, since the reinstatement was partial, the solution found by the minister was to create a tax on crude oil exports from all oil companies.
The tax rate will be 9.2%.
The new tax is expected to raise R$6.7 billion in the four months it will be in force.
Congress will have 120 days to validate the change.
However, according to economist Luís Artur Nogueira, Haddad made “a big mistake” when he created the tax rate.
“No serious country taxes exports,” he observed in an interview with Jovem Pan radio’s Jornal da Manhã.
“Brazil, in fact, copied the failed model of Argentina, which every time it needs money taxes exports,” explained Nogueira.
The economist also argued that the measure announced by the minister “kills the trade balance” and takes away the competitiveness of the Brazilian product.
Besides, it opens a dangerous precedent.
“Today, the government decided to tax oil. Who guarantees that tomorrow it won’t also tax soybean, corn, or iron ore exports?” he questioned.
With the information from Revista Oeste
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Live Market IntelligenceBrazil — Live Market Board
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Brazil — Live Market Board
+0.01%
174,586.26
+0.01%
66,644.91
+0.53%
11,367.47
-0.73%
3,024,971
+0.53%
2,493.32
-0.60%
60,449.35
+0.30%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 174,586.26 | +0.01% | +21.85% | 174,576.80 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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