Alckmin points to a tax reform to boost growth

Alckmin points to a tax reform to boost growth

As he explained, applying this measure could bring growth of 10% of the Gross Domestic Product in 15 years.

Geraldo Alckmin, vice president and Minister of Development, Industry, Commerce and Services of Brazilsaid on Tuesday that the country’s current tax model is very “chaotic” and one tax reform would bring a growth of 10% in 15 years of the Gross Domestic Product (GDP).

“We have a chaotic tax modeleverything is judicialized (…) It is an absurd tax complexity”maintained Alckmin, who affirmed that it is necessary to make the Brazilian economy “grow again” and that a tax reform would bring “economic efficiency”causing the country’s GDP to increase by 10% in 15 years.

Tax reform: Alckmin aims to simplify and expand

“The first goal is simplification“said the vice president of Brazil. “Our model is very unfair. Collect unfairlyEverything here revolves around consumption. In the United States, the excise tax is 20%. There they tax consumption, income and wealth. Here it is consumption, consumption and consumption”.

In this sense, Alckmin explained that Its objective is to simplify the tax system and, at the same time, expand it. The official also added that it is necessary to encourage the local Brazilian industry to focus on foreign tradebecause exports are necessary for the country to grow.

“The world that grows is foreign trade (…) An industry cannot maintain itself if it does not export. The internal market alone is not maintained”Alckmin added.

Source: Ambito

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