The Minister of Finance, Fernando Haddad, denied this Monday (6) the possibility of the federal government raising the Tax on Financial Operations (IOF) to hold back the rise in the dollar. According to the minister, there is an “accommodation” in the exchange rate at the beginning of the year.
“There is a natural accommodation process [do câmbio]. There was stress at the end of last year all over the world and here in Brazil too”, declared the minister after returning from meeting with President Luiz Inácio Lula da Silva to discuss the delay in the 2025 Budget.
For Haddad, the cooling of the dollar’s rise is mainly due to the foreign market, after the president-elect of the United States, Donald Trump, made statements this Monday that, according to the minister, “moderated proposals made throughout the election campaign”.
“It is natural for things to settle down, but there is no discussion about changing the exchange rate regime in Brazil or increasing taxes for this purpose”, declared Haddad. “We are rebuilding the fiscal base of the Brazilian State based on the proposals being addressed by the National Congress”, stated the minister, denying that the government intends to use the IOF to increase revenue.
Currently, the system is a free exchange rate with “dirty” fluctuations, in which the Central Bank (BC) eventually intervenes in the market in moments of dysfunction.
Income Tax
Regarding the second phase of the tax reform, which foresees changes to Income Tax, the Minister of Finance declared that the proposal to increase the exemption range to R$5,000, in exchange for charging a tax rate at source for those who earn more of R$50,000, will only be sent after the election of the new presidents of the Chamber and Senate and the vote on the 2025 Budget by Congress.
“Our priority at this moment is voting on the Budget”, he declared. “But the discussion [sobre o Imposto de Renda] It is scheduled for 2025 and it has to happen in 2025”, he added.
At a breakfast with journalists on December 20, Haddad stated that “inconsistencies” in the Revenue’s statistical models relating to Corporate Income Tax (IRPJ)delayed sending the bill to Congress. The minister said that he will receive information from the Federal Revenue this Monday about the adjustments in the calculations.
