Campos Neto says review of tax waiver is welcome

The president of the Central Bank (BC), Roberto Campos Neto, said this Thursday (27th) that he recognizes the “great government effort” for a “real possibility of debt stability”. According to Campos Neto, the economic team’s strategy to review tax breaks is “welcome”, as it could bring efficiency to the production chain.

Campos Neto participated, this Thursday (27), in a debate session in the Senate plenary on interest rates, inflation and economic growth.

“It is necessary to recognize the government’s great effort with a real possibility of debt stability, and the theme of waiver is welcome, not only because (the tax waiver) is unfair, but also because it affects relative prices and allocates resources in the economy inefficiently. When you have a waiver for a sector, it ends up generating inefficiency in the entire chain”, said the BC president.

According to Campos Neto, the topic has been widely discussed with the economic team, especially with the Ministers of Finance, Fernando Haddad, and Planning, Simone Tebet, who also participated in the debate session in the Senate.

Addressing the senators, Campos Neto said that it is important “for the House to accelerate the project”, in order to make the fiscal framework advance.

Fees

Questioned about the rise in interest rates, the BC president highlighted that, when talking about this topic, “one cannot confuse causes and effect”, and that the debt is not high because interest rates are high. “It’s the opposite: interest is high because of the debt,” he said.

Campos Neto added that it is also important to maintain harmony in the tripod of monetary policy, fiscal policy and the floating exchange rate. “This is how it worked and this is how it has worked. I think attempts to reinvent that wheel have not worked. Sometimes, instead of questioning the form, we have to think about how to improve what already exists.”