The IMF supports Brazil’s tax reform

The International Monetary Fund (IMF) stated that it “firmly” supports the commitment of the Lula da Silva government to improve Brazil’s fiscal position, while encouraging the country to continue promoting its “ambitious” agenda to achieve a more sustainable, inclusive and green economy.

This is clear from the conclusions of the technical staff of the IMF after their visit to Brazil for the preparation of ‘Article IV’, in which some recommendations have been made to carry out a fiscal effort that continues beyond 2026 to put the debt on a “firmly declining” path, while protecting social investment and spending.

“Improving the fiscal framework, broadening the tax base, and addressing spending rigidity would support sustainability and credibility, while providing flexibility, even for new spending priorities,” the Fund said.

On the other hand, the technical team urged taking advantage of opportunities for greener growth, such as the “considerable” effect that Brazil’s competitive advantage in renewable energy would have.

In this sense, the IMF has also shown its support for the authorities plans to strengthen climate resilience, stop illegal deforestation and decarbonize the economy.

K. Tovar

Source: Notiamerica

(Reference image source: Raphael Nogueira, Unsplash)

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