Vice President and Minister of Development, Industry and Commerce, Geraldo Alckmin, said on Tuesday (16) that the tax burden in the current government has not increased. The statement was made amid the dissemination, via social media, of memes and other materials with misinformation about the work of Finance Minister Fernando Haddad, driven by government opponents. 
“In 2023, the gross tax burden was 32.4% of GDP [Produto Interno Bruto]. It was 33.7% until 2022. The tax burden not only did not increase under President Lula’s government, it actually fell. It fell to 32.4%. So, there was no increase in the tax burden, it even reduced by 0.6%”, Alckmin told reporters, after meeting with representatives of the Brazilian Food Industry Association (Abia), who announced investments of R$120 billion over the next few years in the country. The vice president acknowledged that the tax burden at this level is high for a developing country, but that Brazil has made progress with tax reform.
“There is a very important fact, which is the tax reform. It simplifies, replaces five consumption taxes, IPI, PIS, Cofins, ISS and ICMS, with a dual VAT. It completely relieves exports, completely relieves investments. Now, some want to deceive. There is no increase at all, we are simplifying”, reinforced the vice president.
About the law that establishes taxation on international purchases of up to US$50 (around R$250), approved by Congress and sanctioned by the President of the RepublicAlckmin explained that the measure sought to ensure “competitive fairness” between foreign companies and factories located in the country, which produce products in the national territory. “What we are seeking is to have competitive fairness. It is not to create anything. Simply that the tax that the foreigner pays, the importer pays, is not double or triple that of the producer in Brazil, who is generating employment here, adding value here”, he said. The new text includes a charge of 20% on the value of purchases within this limit, very common on international websites such as Shopee, AliExpress and Shein.
Food sector
In the afternoon, at the Planalto Palace, Vice President Geraldo Alckmin, President Lula and ministers received businesspeople from the food sector, represented by the Brazilian Food Industry Association (ABIA). The group announced investments of R$120 billion in the country between 2023 and 2026, which will enable the opening of new factories, expansion of existing factories and research, development and innovation actions.
“Brazil consolidated itself, in 2023, as the largest exporter of processed food on the planet. We already had a strong field, Brazil was considered the world’s breadbasket. And now, with great pride, we can also say that we have become the world’s supermarket, since we are the largest exporter of processed food, ready for consumption”, said the CEO of Abia, João Dornellas, informing that the food industry currently exports to 190 countries. According to him, the sector grew 3.3% in the first half of this year, contrary to the expectations of market analysts.
