The end of equity interest is a step backwards, says former Resita

Former Federal Revenue Minister Everardo Maciel rated the government’s proposal to end the JCP (interest on private capital) as “Step back“, with the possibility of reducing investments in the country. Maciel was part of the team that implemented the model in the country during the former president’s government Fernando Henrique Cardoso (PSDB), in 1996.

“JCP, along with other changes in IRPJ [Imposto de Renda de Pessoa Jurídica]Produced fundraising results. Between 1996 and 2002, the IRPJ Group achieved real growth of 117%. IRPJ’s participation in GDPR [produto interno bruto] 50% increase“, he said in an interview with CNN. “The taxpayers liked it, which is unbelievable. It is good for taxpayers and tax authorities“, he added.

When the JCP is paid, a portion of corporate profits becomes an expense, so the value of the IRPJ decreases. According to the Ministry of Finance, companies use the JCP to pay less income tax.

The government estimates that it will collect about R$10.5 billion in 2024 with the approval of the end of the use of tax benefits. In April, the Minister of Finance. Fernando HaddadHe had said that the possibility of discounting is an irregular practice that works “six companies” What are they doing “Tax Engineering” From a legal device.

In 2022, the European Union Commission (EU) will regulate Job Creation Programs (JCPs). “Once the world adopts the Brazilian solution, we will take a step back“, assessed the former secretary.