São Paulo, 25 – The Minister of Finance, Fernando Haddad, said yesterday, in a forum at Fundação Getulio Vargas (FGV), in São Paulo, that just two measures are responsible for a “tax base erosion” of the order of R$ 100 billion.
The first, he said, was a decision by the Federal Supreme Court (STF), which removed the ICMS from the PIS/Cofins calculation base, with an impact of R$50 billion, or 0.5% of the Gross Domestic Product (GDP). , to the Treasury coffers.
The second, he continued, was the removal of ICMS incentives and benefits from the basis for calculating taxes on profits paid by companies, with a loss of over R$50 billion.
Haddad said that the exemptions amount to 6% of GDP, putting the country in an “absurd” situation, in which incentives with zero social results are granted despite the fiscal deficit. “If you combine the erosion of the tax base with the expansion of expenses, this was the reality found in December, apart from last-minute populism,” said Haddad, referring to the fuel exemption made by former president Jair Bolsonaro in 2019. electoral.
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