Delfim Netto rules out major tax reform


Source: Estadão - São Paulo / SP - 08/11/2010

SÃO PAULO - Professor and former Minister of Finance Antônio Delfim Netto said on Monday, 8, in São Paulo, that it is more important for society to "insist on small things", most of which are of an infra-constitutional nature, to make the reform viable. tax, which has been debated in the country for ten years and has so far not been approved. “It is no use imagining a major renovation. The destination ICMS (Tax on Circulation of Goods and Services) is essential, including to relieve exports. ”

Delfim Netto also defended the exemption of investments, due to the structural change of the tax order in Brazil, in order to stimulate the growth of the economy. According to him, it is possible that the operations reduce the “regressiveness” of the Brazilian tax system. "It is also a fundamental condition to give States a clear opportunity, which will help regional development," he commented.

“Such changes are not difficult”, since, according to Delfim Netto, most of them do not require changes to the Constitution. The professor and former Minister of Finance also mentioned that one of the elements that can collaborate for an agreement between the entities of the Federation in order to make tax reform viable in the short term.

Delfim Netto also pointed out that, in addition to the good conditions of the economy, the country is going through a favorable moment for the accomplishment of the tax reform for two other reasons. One is that the Federal Supreme Court (STF) has just decided on the State Participation Fund (FPE). Another important element is that now, in the country, there is a great debate about the distribution of royalties related to the extraction of oil from the pre-salt layer, which are extra resources that will help the National Treasury and the cashiers of the governments of the states and city halls . The former Minister of Finance spoke at the Industry Congress, promoted by Fiesp.