Income tax reform will lead to a loss of 20 billion reais for the Union, according to Funchal

The Special Secretary of the Treasury and the Budget of the Ministry of the Economy, Bruno Funchal. Photo: Edu Andrade / Ascom / ME

The Special Secretary of the Treasury and the Budget of the Ministry of the Economy, Bruno Funchal, declared on Friday (3) that the income tax reform will cause the government to lose around 20 billion reais in 2022. Thursday (2 ), the Chamber of Deputies approved the proposal. The secretary said the final calculations will still be done by Federal Revenue, but informed that the economics team is working with this impact.

According to Funchal, part of the fiscal impact of the income tax reform will be offset by the reduction in public spending. During an event on Friday, he stressed that the government is expected to reach the end of 2022 by having cut public spending by nearly two percentage points of gross domestic product (GDP).

Funchal sees spending cuts as the best way to rebalance public accounts, but spending cuts have a limit. “There is a limit to this loss. Now there is not so much space to reduce the load, ”he stressed. With information from the Brazil agency.

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