Pension reform can generate savings of up to $ 1.3 trillion in 10 years, according to Guedes | Economy

If the figures are confirmed, the proposed reform of the government Jair Bo Lsonaro could reach two thirds more than the management efforts of Michel Temer, who had failed to advance the bill in Congress. Temer's initial proposal provided savings of 800 billion rand over 10 years. After having undergone changes in Congress, the measure began to have savings estimated at R $ 480 billion, but the project has still not progressed.

"This is an important reform that will give us an important structural fiscal adjustment," Guedes said, noting that the numbers were still under study. "This will have a powerful tax effect and will last 15, 20 or 30 years," he said, adding that "that is where we are following the path of Greece".

Previously, Guedes had already defended the pension reform in an interview with Bloomberg TV. On Tuesday (22), he also broached the subject at an in-camera luncheon organized by Itaú Unibanco, in which he reiterated that, if it is not approved, there is a plan B.

The minister would give a press conference on Wednesday and the expectation was to detail the government's proposal for pension reform. Nevertheless, Guedes canceled the press protests that Bolsonaro and the other ministers who are integrating the Brazilian entourage at the Forum – Sérgio Moro (Justice) and Ernesto Araújo (Foreign Relations).

Even with the cancellation, Guedes' latest statements on pension reform have been welcomed by investors in the Brazilian financial markets. On Wednesday, the Ibovespa rose and came back to reach a record close score, and the dollar interrupted a sequence of 6 highs on the real. President Jair Bolsonaro gives an interview to Bloomberg Wednesday at the Davos Forum – Photo: Alan Santos / PR "title =" President Jair Bolsonaro gives an interview to Bloomberg Wednesday at the Davos Santos Forum / PR "src =" data: image / jpeg; base64, / 9j / 4AAQSkZJRgABAQAAAQABAAD / 2wBDAAMCAgMCAgMDAwMEAwMEBQgFBQQEBQoHBwYIDAoMDAsKCwsNDhIQDQ4RDgsLEBYQERMUFRUVDA8XGBYUGBIUFRT / 2wBDAQMEBAUEBQkFBQkUDQsNFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBQUFBT / wgARCAAQABkDASIAAhEBAxEB / 8QAFgABAQEAAAAAAAAAAAAAAAAABgQF / 8QAFgEBAQEAAAAAAAAAAAAAAAAABQME / 9oADAMBAAIQAxAAAAEdYQ1Zvh0JmE3V / 8QAHRAAAQQDAQEAAAAAAAAAAAAABAECAwUABhQRFf / aAAgBAQABBQJRolrtepwzxymcxP158dbMFr9VsEjyV3qdJOf / xAAbEQACAgMBAAAAAAAAAAAAAAACAwABBRESMv / aAAgBAwEBPwE3qSXNxeQGvG5 // 8QAGhEAAQUBAAAAAAAAAAAAAAAAAQACAxESBP / aAAgBAgEBPwGYOmAypeW62v / EACIQAAICAgEDBQAAAAAAAAAAAAECABEDIRITMbEUMjOBof / aAAgBAQAGPwJh63Hj17URxAmVHbIy8VcOAsrT9Nvo7nweYOkCmRzRTmf2F8rbRmYrdWoQnzUsGnPYzuJ 8QAHhAAAgICAgMAAAAAAAA AAAAAAREAITFBkfFhcYH // / // // 2gAIAQEAAT8hZLBFR + lmVCsMA2jziAMBpGC0R4MCQrHIlbpXyCO3VyqOYcrWYsTt5 aAAwDAQACAAMAAAAQvg xAAbEQACAwADAAAAAAAAAAAAAAABEQAhMUHh8P / aAAgBAwEBPxB0SSuFR0evY2IW1Duf / 8QAGBEAAwEBAAAAAAAAAAAAAAAAAAEhETH / 2gAIAQIBAT8QmaEZE85rZ // EAB 4QAQEAAgEFAQAAAAAAAAAAAAERACExQVFx0fCB / 9oACAEBAAE / EA4Z0kCK6ju8YwiyoMCTWnG1CDdYhObbFiicjL 59PphK0QbA7hBWCqu5N80MUDkaGolwwC7osh0EA9p03Z4z6vvP // + Z "/>

President Jair Bolsona ro also commented on pension reform on Wednesday in Davos. In an interview with the Bloomberg news agency, he said the change in legislation on social security in the army will only be brought "in a second part of the reform".

Also in the Reuters interview, Guedes commented on the imputed corporate tax. The minister said the government was trying to reduce the rate from 34% to 15%. This "brutal" reduction would be offset by the taxation of dividends, now exempt, said Guedes. According to him, this change will increase competitiveness. According to the Brazilian government, Guedes also intends to reduce Brazil's tax burden to 30 percent of its gross domestic product (GDP).

• Dividends, interest of capital: understanding the terms used by Guedes in Davos

Currently 36%.