1. Home
  2. / Economy
  3. / Northeast Brazil may have favored development with a new tax system
reading time 3 min read

Northeast Brazil may have favored development with a new tax system

Written by Bruno Teles
Published 18/05/2023 às 17:42
The Northeast region of Brazil has historically been the victim of serious social and economic problems. One of the measures proposed to promote the development of the region is the approval of a new tax system. Government representatives stated that the measure is crucial to bring significant benefits to the Northeastern states.
PHOTO: new tax system

One of the measures proposed to promote the development of the region is the approval of a new tax system.

Government representatives stated that the measure is crucial to bring significant benefits to the Northeastern states. A Tax reform proposed by the government must bring gains to the whole country, but especially to the states less developed.

The creation of a Regional Development Fund is one of the instruments that will be implemented to boost the economic growth of less developed regions. This fund should be an important tool for financing projects aimed at reducing socioeconomic disparities between the different regions of the country.

The reform also includes a mechanism for cashback, which will promote tax return for families. This mechanism should benefit low-income populations, mainly concentrated in the less developed states of the country.

New tax regime to reduce inequality

During the Northeast bench meeting, the Minister of Planning and Budget Simon Tebet highlighted the importance of approving a new fiscal regime as an essential measure to combat income inequality in Brazil, especially in the Northeast region.

Tebet emphasized the need to draw up a new Regional Development Plan, which meets the specific needs of each state. The goal is to implement the program from the second half of this year.

Regional inequality is a serious problem in Brazil, where some states have per capita much higher than others. The Northeast, in particular, has eight of the ten poorest states in terms of income. per capita. This reality is unacceptable and the elimination of regional inequality is a crucial priority for the country.

The socioeconomic challenges of the Northeast

The Northeast region has faced several obstacles in terms of economic, social and human development. The Northeast still suffers from high illiteracy rates, poor quality of education, high infant mortality rates and low life expectancy. The income per capita it is also significantly lower compared to other parts of the country.

However, the region also has great potential for development, especially in the areas of agribusiness, tourism and renewable energy. The approval of a tax reform could help boost these sectors and, consequently, improve the socioeconomic scenario in the region.

The creation of a new tax system and a Regional Development Plan are important steps to combat inequality in the Northeast region. Eliminating socioeconomic disparities is crucial for the country's sustainable growth and improving the quality of life of populations. The implementation of these measures can contribute to a more prosperous and fair future for the entire Brazilian population.

Simone Tebet participates in the launch of the Plurianual Participatory Plenary Sessions in Salvador

via Simone Tebet

Be the first to react!
React to article
Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

Share across apps