Mercadante defends taxation Bets to compensate IOF: “Selic generates debt, IOF, revenue”
The president of BNDES, Aloizio Mercadante, defended on Monday (26) the increase in taxation on online bookmakers-calls Bets – as an alternative to compensate for the effects of recent discharge on the financial operations tax (IOF). The statement was made during an event of Nova Indústria Brasil, alongside Finance Minister Fernando Haddad, in Brasilia.
For Mercadante, betting platforms are “eroding popular finances,” and their taxation could help alleviate other charges on the formal economy.
“If we tax the bets, it is possible to reduce the impact of IOF and create healthier alternatives of revenue,” he said.
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The president of BNDES also criticized IOF for its side effects on the cost of credit. According to him, the tax contributes to a contractionist policy, which restricts the offer of money and makes the financing more expensive.
“Selic generates debt. IOF generates revenue, diminishes the problem of the debt-PIB relationship in sustainability. But we need to look at structural spending and increase efficiency,” he said.
Mercadante still again charged a gradual reduction of the Selic fee, today at the level of 14.75% per year, the largest since 2006. “We will lower Selic, because there is room for it. It should be done gradually, safe and sustainable,” he said.
Speech occurs at a time of tension between the government and the financial market, after the announcement of IOF adjustments for international operations and business credit, a measure criticized by various sectors and partially reversed by the economic team. At the center of the discussion are alternatives to balance public accounts without compromising government growth or popularity.
