Haddad: "Brasil's tax system will be among the ten best in the world"

At an event at the US Chamber of Commerce, Brasil's Finance Minister, in Washington for the G20 ministerial meeting, said that tax reform will facilitate business development. The Inter-American Development Bank (IDB) president, Ilan Goldfajn, also attended the meeting. He presented a diagnosis of Latin America and said: "There are opportunities in areas such as ecological transition".

Finance Minister Fernando Haddad presented Brasil's recently approved Tax Reform to the US Chamber of Commerce in Washington (DC). Haddad arrived this Tuesday (April 16) in the US capital to lead the G20 Finance Track meeting, which takes place during the IMF and World Bank Meeting.

During the event "Investing in Latin America and Brasil" Haddad explained to the participants how the Brazilian Tax Reform should facilitate business development and attract investment. "We have been awaiting this reform for forty years. The situation had become untenable. We have dedicated a significant amount of time to it. Brasil is going to face considerably big change," he said. 

The minister also addressed the reform's regulations, which will still be considered by the National Congress. "Regulation won't ruin the Constitutional Amendment, but it can make it worse or improve it. Our big challenge is to prevent the exceptions to the standard rate from going too far," he explained. "Regardless of the decision at Congress, we will have a first-world tax system from 2027 and it will be a real revolution." 

Recalling a World Bank study that considered the Brazilian tax system to be one of the worst on the planet, Haddad also projected that once the reform is implemented the reality should be the opposite. "If today the Brazilian tax system is among the ten worst in the world, it will certainly be among the ten best," he said.

Diagnosis of Latin America

The event at the Chamber of Commerce was also attended by the president of the Inter-American Investment Bank (IDB), Ilan Goldfajn, who presented a diagnosis on Latin America. "We have many challenges, but we also have a window of opportunity. We have the usual challenges: poverty, inequality. There are opportunities in areas such as ecological transition," he said. 

Goldfajn highlighted the need to create conditions for investment, citing the example of the model created by Brasil for currency hedges for green investments: "It has all the potential to be adapted and replicated. Originating from Brasil, this is platform can be applied in various parts of the world." 

Haddad also spoke about the Ministry of Finance's approach to the climate crisis, presenting the Ecological Transformation Plan. "The world will need to find cheaper ways to make the transition. Brasil has advantages that allow us to make a contribution to the transition. The range of investments available is enormous, and the trend is growing," he said. 

During their visit to the US Chamber of Commerce, Haddad and Goldfajn were accompanied by the Brazilian ambassador to the US, Maria Luiza Viotti, and the secretary for International Affairs at the Treasury and coordinator of the G20 Finance Track, Ambassador Tatiana Rosito.

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