Later this semester, the government intends to send a proposal to Congress for the taxation of big techs (large technology companies), said this Wednesday (28) the executive secretary of the Ministry of Finance, Dario Durigan. He clarified that the text will be processed separately from the 2025 Budget bill, which will be sent on Friday (30) to the Legislature.
“The budget law does not include taxation of large technology companies, but there is maturity in this process in the world that we need to bring to Brazil. It will not be in the PLOA [projeto da lei orçamentária anual]but within the second semester we will address this issue of taxation of big techs”, Durigan said at a news conference to detail the government’s spending review plan.
The secretary did not clarify how the taxation would be carried out. He only said that the issue represents one of the pillars of recommendations from the Organization for Economic Cooperation and Development (OECD), a group that suggests economic and social measures to countries.
According to the first estimates of the economic team, the taxation of big techs should yield around R$5 billion annually to the federal government. One option would be to increase the Economic Domain Intervention Contribution (Cide), the same tax charged on fuel, but Durigan did not respond to the question about this possibility. If the government opts for this tax, local governments would benefit, because 29% of Cide revenues are shared with states and municipalities.
Income reform
Regarding structural measures to reduce public spending, the executive secretary said that the economic team is working to advance discussions on income tax reform and the linking of revenues and expenses. Durigan, however, did not announce a specific date for submitting these proposals.
“We are not the ones who will say the exact time, but we are working to provide the government with all the conditions so that, as soon as possible, debate on income linkage, income reform, so that this is ready, evaluated and studied from a technical point of view”, declared the number 2 of the Ministry of Finance.
