Vice-president-elect Alckmin says new Brazilian government will resume tax reform

The vice-president-elect, Geraldo Alckmin, said this Thursday (Nov. 17) that the new government would resume tax reform.

According to him, projects related to the theme that is in Congress will be used.

“It [in reference to tax reform] will help Brazil grow. It has an effect on productivity, simplifies, reduces costs, avoids the tax war,” he said in an interview with the newspaper O Globo.

Alckmin also said that the new administration will work to remove the spending cap from the Constitution and that “there is no chance of fiscal irresponsibility.

The coordinator of the transition team for the new government also stated that there would be spending cuts. “Spending efficiency is a never-ending work. We will review all federal spending,” he added.

Although he cited these possibilities for balancing the economy, the vice president-elect did not give concrete details of which provisions he considers the most defensible in an eventual tax reform.

In the case of spending cuts, neither was it clear which federal government expenses could be eliminated starting in 2023.

With information from Poder360

For the full picture, see our Brazil Tax Reform: Complete Guide.