Brasília, September 4, 2003 (Agência Brasil - ABr) - Commemorating the approval of the text of the Tax Reform in the first round of voting in the Chamber of Deputies, the Minister of Finance, Antônio Palocci, said that this represents an important step for the reduction of taxes on capital goods, so that firms can pay a good tax.

Palocci made these affirmations before the Council of Economic and Social Development (CDES), which met today in the Planalto Palace. He also recalled that the Tax Reform is incomplete but that it is fundamental to stimulate growth beginning with the improvement in macroeconomic indicators. Palocci acknowledged that to undertake a reform like this one brings all kinds of pressures.

The Minister emphasized that the readjustments are important to improve the country's social situation. "President Lula, just as soon as he took office, determined two things: Work hard this year, even without resources, to unify the social programs. And, second, so that the country can distribute correctly the public resources it does have."

For this reason, said Palocci, at the same time as we put together the tax package, we decided to cut R$ 14 billion. The Minister also affirmed that now is a moment of expectation about economic growth, and he said that he knows how to guarantee this growth in a sustainable way and with internal savings. In the Minister's view, if this is not done, the country could be led into a growth bubble that could burst in the future. Palocci ended his speech saying that it is not possible for a country to attain lasting growth without social inclusion. (DAS)