São Paulo, September 1, 2003 (Agência Brasil - ABr) - The Minister of Finance, Antônio Palocci, affirmed that the tax reform proposal under consideration in the National Congress seeks to improve the lives of the poorest families, who pay taxes on items such as the products that make up the basic food basket and medications, that richer families often don't buy. With passage of the reform, taxes on these items will be reduced, the Minister informed. Palocci, who took part on Friday (29) in a debate sponsored by the Workers' Central Union (CUT), said that "the purpose of the reform proposal before Congress is to provide fiscal justice for the population."

The president of the Federation of Industries of the State of São Paulo (Fiesp), Horácio Lafer Piva, who also participated in the debate, commended the Administration for its efforts and competence in the management of economic policy.

Nevertheless, Piva affirmed that business leaders can be expected to delay their investments a little longer, until they become convinced that the country's growth is sustainable. The business spokesman highlighted positive economic steps such as reductions in interest rates and the bank reserve requirement. (DAS)