Source: Yahoo Brazil - 24/05/2012

BRASILIA. This Thursday, economist Paulo Rabello de Castro, who coordinates the Brazil Efficient Movement, presented a tax reform proposal to Finance Minister Guido Mantega and Vice President Michel Temer on Thursday. Called “Agenda for the Accelerated Advancement of Brazil”, the text contains guidelines until 2022 and was formulated by the entity Group of Business Leaders (Lide).

According to Paulo Rabello, who was accompanied by the businessman and president of Lide, João Doria Júnior, the Brazilian tax burden will correspond this year to 37% of the GDP (Gross Domestic Product, sum of wealth produced in one year). And, according to the proposal, it could fall to 30% by 2022, with an increase in revenue.

This is the cat's leap, according to the economist: by simplifying the collection of taxes - including with the unification of the ICMS -, cutting interest rates, improving management and increasing competitiveness, he is betting that the government would promote economic growth and, thus, compensate the decrease in taxes.

- The main focus of Agenda Brasil is to give even more strength to the investment plan that is already underway and that can be quite accentuated, if there is a renegotiation of the terms of the states' debt - said Paulo Rabello, after the meeting with Mantega and Fear in the early afternoon, in the Vice-Presidency, in a building attached to the Planalto Palace.

- (That) will help governors and mayors to implement more useful investments for the population in the interior of the country. Hundreds, thousands of municipalities benefiting from a release of funds that today go, in a sterile way, to pay interest.

João Doria said that Lide and the Federation of Industries of the State of São Paulo (Fiesp) invited Mantega to debate the topic in early July, in São Paulo. According to João Doria, Mantega agreed.

Paulo Rabello stated that Mantega was receptive to the proposal and praised the measures taken by the government to face the international crisis:

- We are supporting Minister Guido Mantega to bring interest to normal levels. Interest in Brazil is loan shark interest - said the economist.