In an event, the minister defended the exemption of the payroll.
The generation of jobs in the second half of the year could make the country close 2020 losing fewer jobs than in the recession of 2015 and 2016, said the Minister of Economy, Paulo Guedes, yesterday. The minister defended the payroll tax exemption and criticized the National Congress for banning the debate on the topic.
“In the biggest global crisis, we can end the year with a third or a quarter of the jobs that were lost in the self-imposed recession of 2015 and 2016”, said Guedes, during the 41st Brazilian Congress on Private Pension promoted by the Brazilian Association of Closed Entities Supplementary Pension Plan (Abrapp).
According to Guedes, Brazil may end the year with the closing of about 300 thousand jobs. From January to September, according to the most recent data from the General Register of Employed and Unemployed (Caged), the country had eliminated 558,600 vacancies, against a negative balance of 1,144 million registered from January to May.
At the event, the minister again defended the tax exemption for all sectors of the economy, but without specifying where the revenue would come from to cover the benefit. “We are convinced of the payroll tax relief problem. We need to remove this problem, which is the collection of taxes on the payroll. This tax is a disaster. It puts 40 million Brazilians out of the formal market and undermines the collection for Social Security, ”said Guedes.
On several occasions, the minister defended the creation of a tax on digital transactions to cover the loss of revenue with the payroll tax.
Although the government has not yet sent the proposal to Congress, Guedes criticized the deputies for not going ahead with the debate. “The Chamber banned this debate. Now, an elected government wants to make a reform and it doesn’t succeed, let’s take care of the others, the expenses, the expenses, we start with Social Security, then the interest on the debt ”, he declared.
Second wave of covid-19
Regarding the resurgence of covid-19 cases in the country, Guedes said that the phenomenon is restricted to some regions and is not general. “If the disease comes, we are in another dimension, we know how to act, but it is not our plan”, pondered the minister.
He reiterated that the economic team is focused on continuing structural reforms, such as tax and administrative reforms, and on preserving the spending ceiling, without resorting to populist programs.
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