Motta suggests tax review and administrative reform as options at the discharge of IOF

Amid the Congress’s strong reaction against the increase in the Increased Financial Operations Tax (IOF) announced by decree by the Government, the President of the Chamber of Deputies, Hugo Motta (Republicans-PB), suggested on Thursday (29) that the executive reviews tax exemptions and promotes an administrative reform to balance the public accounts.

Motta criticized the so -called “gambiarras” adopted to deal with fiscal imbalance and defended structuring measures to ensure fiscal responsibility in the country.

Read more: Motta creates a group about administrative reform with PSD deputy as coordinator

According to the mayor, the tax exemption policy is not an exclusive problem of the current government, but an inheritance of previous management that needs to be reviewed.

“Brazil can not stand the amount of exemptions our country has,” Motta said, emphasizing the need for profound changes, such as administrative reform, to make the public machine more efficient and improve the economic environment.

Read more: Minister receives group deputies about administrative reform to discuss proposal

The increase in IOF, which has the potential to expand the collection of R $ 20.5 billion, faces resistance in Congress, where opposition parliamentarians and the ruling base articulate the overthrow of the decree through Legislative Decree (PDL) projects.

To date, 22 PDLs have been presented, a rare instrument that, if approved, would represent a great defeat to the government.

Hours before Motta’s statements, Finance Minister Fernando Haddad met with Congress leaders to try to avoid the overthrow of the decree, arguing that the measure is necessary to maintain the operation of the public machine and to avoid additional contingencies.

However, the climate in the legislature remains tense, with criticism of the increase in tax and how the government has led the tax issue.