IOF reaction: entrepreneurs advocate reforms and cutting of public spending
The increase in the financial operations tax (IOF) announced by the government last week continues to give the Brazilian business, although the measure was partially revoked.
Entrepreneurs like Rubens Menin, owner of Construtora MRV, have been manifesting in recent days on social networks in favor of other measures to face the deficit in government accounts.
“The IOF crisis has opened something bigger: you can no longer postpone the structural reforms that the country needs. It’s time to face the real problem: simplifying taxes, unlinking revenues and modernizing the state with a serious administrative reform,” the businessman posted on the X (former Twitter).
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Another businessman, Walter Schalka, who is a member of Suzano’s Board of Directors, told O Estado de São Paulo that it is necessary to review the reasons that lead to continuous growth of government expenses.
“So, while we do not have an important renovation, from reducing the cost of the state, which may be by administrative reform and/or privatization, or combination of both, we will not be able to leave the place. We will always be managing an emergency situation,” he told the newspaper.
Read more: Businessman pressures Congress to nullify IOF increase: “It’s not a collection”
The demonstrations accompany the campaign started by entities that represent the Brazilian productive sector asking the National Congress to annul the federal government decree that raised tax rates, pointing out negative effects on credit, exchange and long -term savings.
The manifesto was signed by confederations such as CNC, CNI, CNA, CNSEG, OCB, CNF and Abrasca.
Also according to the newspaper, the president of the National Confederation of Financial Institutions (CNF), Rodrigo Maia, who was a federal deputy and mayor, articulates with leaders of the productive sector a meeting with David Alcolumbre (Union-AP), president of the Senate, and Hugo Motta (Republicans-PB), to detail the congressional sector to the private sector.
Read too: IOF on backgrounds worries market, but managers see room for adaptation
The idea is that the business entities that have militated together with the withdrawal of IOF participate in the meeting and seek political support before resorting to the judiciary.
Who also believes that the debate on the subject should remain hot in the coming days is Rafael Furlanetti, partner of XP Investimentos and president of the National Association of Brokerage and Distributors of Securities Titles and Values (Ancord).
Furlanetti highlighted to the newspaper some suggestions that are already being discussed in Brasilia, such as the revision of expansion of spending on continued benefit (BPC), with insurance and the detachment of government revenue spending, such as health and education floors.
Learn more: XP: IOF crisis exposes government challenge to raise without friction with congress
“There is a tax spending of $ 700 billion. If you make a 5% linear cut, you are talking about $ 35 billion. This is staggered over time it is possible to be done,” he says in the publication.
