International context can expand benefits of tax reform

Made during the seminar Tax Reform: The Time is Now, at the headquarters of the National Confederation of Industry (CNI), in Brasília, the statement took into account the “unique competitive advantages” of Brazil in relation to the ecological transition and, above all, to a geopolitics that favor the country “even for bad reasons”, such as wars and trade conflicts.

Haddad said that the country’s growth potential is much greater than projected by economists.

“I keep hearing them say that our potential is to grow 1.5%. That does not exist. We only have low growth potential because we are disorganized. If we organize ourselves, there is no way we can grow little. Especially in this historic period, in which geopolitics favors us even for bad reasons, such as wars, trade conflicts, the indebtedness of entire continents, disorganized houses in several countries”, said the minister.

ecological transition

Another favorable factor that can help the country to gain even more by approving the tax reform is the ecological transition, “due to our energy matrix, which gives us unique competitive advantages”, said Haddad, referring to the expected economic growth and new legislation, if it is passed.

“I think we are in a very special moment for the Brazilian economy. If we continue to take the right steps, and especially those that are coming, we can enter a cycle of sustainable development after many years of meager growth and difficulty in meeting the needs of the population and the need to create a more favorable business environment for our Brazilian entrepreneurs”, he added.

According to the minister, the tax reform is part of this scenario. “I have already seen several attempts at tax reform. When I was in President Lula’s government, we had two attempts. One of them, with the support of the 27 governors, who went to the National Congress accompanied by the president, to deliver the proposal for a constitutional amendment that did not succeed. But I understand that we are at a time when we have no alternative (other than the approval of this reform)”, he added.