Brazil’s Finance Minister Fernando Haddad urged lawmakers on Wednesday to approve key economic measures in Congress. He said these steps are needed to keep the country’s current growth strong and sustainable.
Haddad spoke during a hearing in the lower house of Congress. Earlier, Speaker Hugo Motta warned that the government’s plan to reduce a controversial tax on financial transactions is facing opposition from some lawmakers.
On Sunday, Haddad proposed making up for the lost revenue by increasing taxes on online betting, private credit, and financial institutions.
Motta stressed that simply raising revenue without cutting spending is not a solution.
Haddad highlighted that under President Luiz Inacio Lula da Silva, Brazil’s economy is growing by about 3% annually. However, he said the government must continue pushing reforms to maintain this growth.
“There is no reason we can’t keep growing, but we must have the courage to address difficult issues,” Haddad said.
He also expressed concern about rising government spending, including on the Fundeb education fund, which the current administration is honoring despite not starting it.
Haddad argued that fixing flaws in the tax system is better than just raising tax rates. He also defended a proposed income tax reform that would raise exemptions for the middle class and increase taxes on the wealthy.
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