"Tax reform is comparable to the implementation of the Real Plan in Brazil," says Haddad

247 - The Minister of Finance, Fernando Haddad, said on Thursday (25th), at an event aimed at tax law professionals in São Paulo, that the tax reform is comparable to the implementation of the Real Plan in Brazil, in 1994, and other economic events that changed the fiscal landscape in the country.

"I would compare the tax reform to events like the Real, to foreign exchange reserves, and to the reduction of public debt in the first decade of the 2000s. These are things that began to consider the poor in the public budget," said the Minister of Finance, according to CNN Brazil, which highlighted that these events change the face and reconfigure the country.

The head of the department sent the reform proposal to Congress on Wednesday (24th). The president of the Senate, Rodrigo Pacheco, promises the regulation of the tax reform still this year.

"Optimism" - Haddad said he is optimistic about the approval by the Chamber of Deputies, by July, of the regulation of the tax reform on consumption. In an analysis of the proposed text, Haddad pointed out that the new formula aims to replace a system considered "cumulative, opaque, and unfair, which penalizes the poorest." "Taxes in Brazil are cumulative. In the end, no one knows how much tax they pay on what they consume. The system is inefficient and opaque. The new formulation gives visibility to the Brazilian, they will know how much they are paying," said the minister to the column of journalist Daniela Lima, from G1.

Haddad emphasized that, in the long term, the regulation of taxation on consumption paves the way for taxing the super-rich, seeking a more equitable model and aligned with practices adopted by developed countries. "In Brazil, proportional to income, the poor pay more tax than the rich. This reform prepares the ground for us to approach what developed countries do, which tax the richest more fairly," he stressed.

Real Plan - The plan was an economic program implemented in Brazil in 1994 with the main objective of controlling the hyperinflation that plagued the country at the time. It was conceived and executed during the government of President Itamar Franco, with Fernando Henrique Cardoso as Minister of Finance, and led by a team of renowned economists, such as Gustavo Franco and Pérsio Arida.