Fiemg Criticizes Fiscal Package and Points to Legal Uncertainty Risks

The Federation of Industries of the State of Minas Gerais labeled the new fiscal package presented by the government as absurd. The entity states that the measures compromise legal certainty by limiting the use of tax credits and reducing corporate tax benefits.

The supplementary bill proposes a 20% cut in incentives and restricts the offsetting of debts with the Federal Revenue Service. Fiemg president Flávio Roscoe argues that preventing the use of already recognized credits is equivalent to institutionalized default.

The federal government defends the complexity of the fiscal design as a way to accelerate the consolidation of public accounts. The Ministry of Planning estimates that the set of measures, including budget freezes, will generate an impact between R$ 50 billion and R$ 60 billion in 2027.

The package provides for a minimum budget freeze of R$ 13 billion and limits real expenditure growth to 2% in adjustment years. The proposal also reduces support for the Export Financing Program, which raises concerns about the competitiveness of the higher value-added industry.

The perception of greater fiscal rigor may influence the trajectory of interest rates and the behavior of the Ibovespa by affecting expectations regarding country risk.