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Tax reform will be a priority for Lula da Silva’s government in Brazil

Daniel Stewart

2022-11-26
Former
Former Brazilian president and presidential candidate for the Workers’ Party Lula da Silva (r) and PT candidate for the governorship of Sao Paulo Fernando Haddad (l). – Lincon Zarbietti/dpa

Lula da Silva’s representative at the meeting with the banks on Friday, Fernando Haddad, assured that the next government of the candidate-elect will give priority to tax reform, although he made no mention of the fiscal anchor for the balancing of accounts that is being discussed under the Proposed Amendment to the Constitution (PEC).

«We need, then, to get back on track, how do you generate the state? Remembering that we already had governments that managed public affairs well, governments that managed to produce expressive results from the point of view of growth, income distribution, inflation control, debt control, even without increasing the tax burden», Haddad emphasized, as reported by G1.

However, as reported by the same media, investors have reproached that his statement lacks more concrete signs of control of public accounts and the markets have reacted quickly so that the stock market closed with a fall of 2.55 percent.

For the time being, until the inauguration in January, the main task of the next president-elect, who is recovering from a throat operation, is to obtain support to carry out the Transition PEC. Specifically, Lula is seeking to increase the budget allocated to social programs.

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