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Paulo Guedes highlighted Brazil's potential in several industrial sectors and reinforced that the government intends to "reposition industry in Brazil", including semiconductors
Paulo Guedes, Minister of Economy, informed this Wednesday (28) in the “Pânico” program that the federal government has a Provisional Measure to encourage the implementation of semiconductor factories in Brazil. Since the Covid-19 pandemic, semiconductor production has suffered a serious crisis, which has mainly affected the global automotive industry.
Implementation of semiconductor factories
Guedes said that he went abroad to talk to the Japanese, since everyone is looking for semiconductor factories and they want to implement them in Brazil. Production arrangements are being brought to the country, as 75% of production takes place in Taiwan, which is under political risk and is very far away. Guedes adds that he seeks to create an incentive, without implementing income taxes and already having a MP ready. The minister also highlighted Brazil's potential in several industrial sectors and reinforced that the government intends to "reposition industry in Brazil".
The Minister of Economy pointed out that the Brazil missed the first industrial revolution and the fifth is already upon us. With that, the country will embark on this new revolution. Brazil dominates wind energy, mainly, but it must also ensure cheap energy, energy security in the world and solar energy.
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Find out about tax reform
Paulo Guedes also commented on the tax reform that, according to him, is blocked in the Senate. According to the minister, the reform proposal was approved in the Chamber by a large majority, including with “the support of the left”. During the speech, Guedes criticized a small portion of the right who he named “woodpecker”.
He said that on the right it's 90% working, etc, and 10% woodpeckers. The 10%, for example, blocked the proposed tax reform. He also said that he spoke with a left-wing deputy and asked the following question: “Are you going to let an opportunity like this pass? To tax profits and dividends?
According to the minister, after the reform was approved in the Chamber, "a lot of mice descended on Brasilia and stopped everything". Paulo Guedes has already informed in other situations his intention to use the taxation of profits and dividends, present in the tax reform, to fund the permanent value of the Auxílio Brasil at R$ 600.
Basic income in Brazil
Paulo Guedes praised the creation of the Real Plan and Bolsa Família during the interview, but pointed out mistakes in the programs. According to the Minister of Economy, one of the negative consequences of the Real Plan was the stagnation of the Brazilian economy.
Guedes said it was a well-designed plan, but it had major flaws. First, he pointed out that they thought the exchange was an anchor and ended up blowing the anchor. According to him, the exchange rate is supposed to be floating. The second flaw refers to fiscal responsibility, which only came eight years later, stagnating the Brazilian economy.
Paulo Guedes complemented his speech by saying that former President Lula was an interregnum, because he managed to grow in the wake of the previous stabilization, but right there, the gas ran out. He had the merit of having some expenses like Bolsa Família, placing the most fragile in the public budget, but that now this would triple. What previously represented 0,4% of GDP will now be 1,5% of GDP, three times more, for 20 million families, and 50 million Brazilians.”.
The minister also recalled that the government had, in 2018, the intention of creating a basic income program that, according to him, had to be advanced with the Covid-19 pandemic and the creation of emergency assistance.
