President Luiz Inácio Lula da Silva ruled out, this Wednesday (26), the decoupling of the pension floor from the minimum wage.
In an interview with Portal Uol, the president also stated that he will not change the policy of increasing the minimum wage. “I don’t consider it an expense,” said Lula about the salary increase.
“The word minimum wage is the minimum wage a person needs to survive. If I think I’m going to solve the problem of the Brazilian economy by squeezing the minimum, I’m disgraced, I’m not going to heaven, I’d be in purgatory”, argued the president in the interview.
“I need to ensure that everyone is able to live with dignity. Therefore, we have to try to share our daily bread on equal terms. Do you think I want a businessman to make a loss? I’m not crazy! Because if it makes a loss, I’ll lose my job. I want the businessman to make a profit, but I want him to have a head, like Henry Ford had, when he said: ‘I want my workers to earn well so they can buy the products they manufacture’. If this philosophy predominated in everyone’s mind, this country would be wonderful”, added Lula.
Henry Ford (1863-1947) was an American businessman and founder of the Ford automobile company.
In a public hearing at the National Congress this month, the Minister of Planning and Budget, Simone Tebet, said that the government is reviewing spending and that the discussion is only being carried out internally. The economic team studies the possibility of “modernizing” the links between labor and social security benefits, not related to retirement, such as the continuous payment benefit (BPC), the salary bonus and unemployment insurance.
During the interview this Wednesday (26), Lula also stated that the policy of increasing the minimum wage will be maintained as long as he is President of the Republic. For him, this is the way to distribute the country’s wealth.
The policy provides for an annual adjustment based on the National Consumer Price Index (INPC) plus the positive variation in the Gross Domestic Product (GDP – sum of goods and services produced in the country) from two years previously. If GDP does not have real growth, the value to be readjusted only takes INPC into account.
“You always have to replace inflation to maintain purchasing power, and we give an average of GDP growth over the last two years. GDP growth is exactly what this means. GDP growth is for you to distribute among the 213 million Brazilians, and I cannot penalize the person who earns less”, stated Lula.
Purchase taxation
The president also commented on the federal taxation of remittances of up to US$50 (around R$250) coming from abroad. Lula defends a balanced treatment in the collection of taxes from the population, arguing that people traveling abroad are also exempt from charges.
“We have a sector of Brazilian society that can travel abroad once a month and can buy up to US$2,000 without paying tax, it can reach the free shop [loja livre de impostos] buy US$1,000 and you can buy US$1,000 in the country and pay no tax. Everything is normal, it’s wonderful. Who did I do this for? To help the middle class, the upper middle class. Now, when your daughter arrives, my daughter, my wife, who is going to buy $50 [em lojas on-line no exterior] Will I tax the US$50? Isn’t it irrational? Isn’t that a contradictory thing?” asked Lula.
This month, the Chamber of Deputies approved bill that taxes international purchases of up to US$50, which is now on President Lula’s desk for sanction. In a recent statement, Lula said that “the trend is veto” this taxation.
Currently, through the program Conforming Shippingpurchases from abroad under US$50 are exempt from federal taxes and are only taxed by the Tax on Circulation of Goods and Services (ICMS) at a rate of 17%, collected by the states. The federal import tax, of 60%, is only levied on shipments from abroad over US$50.
The list of companies that have already joined Remessa Compliance, which includes Amazon, Shein and Shoppe, can be seen at Federal Revenue page on the Internet.
According to the text approved by parliamentarians, a 20% tax will be charged on purchases made abroad of up to US$50. From US$50 to US$3,000 (around R$15,000), the tax will be 60%, with a discount of US$20 on the tax payable.
*Extended text at 2:03 pm
