President Bolsonaro Authorizes Merger Between Embraer and Boeing | New

The official photo of the president was ready. She was taken on the 7th at the dawn palace. Jair Bolsonaro wore the same suit. A few more days and you will be in the offices of the federal government.

The governor of São Paulo, João Dória, of the PSDB, was with Bolsonaro. He undertook to support his employees in the pension reform.

Parallel to the search for a fiscal balance, the economic team is working to reduce the tax burden on the wage bill. The government understands that the weight of taxes on the wage bill contributes to unemployment in the country.

Federal Revenue Secretary Marcos Cintra explained that this reduction should be broad and universal.

"The dismissal of the payroll took place, and I think this is widely known, often because of the specific and specific requirements of very sectoral negotiations. We are working broadly, universally. The impact this will have on the economy will certainly be much greater and much more positive, on the part of the employer and even, possibly, from the point of view of the economy. I think that we have to pay the wages as a whole, it implies not only social security contributions, but even issues relating to the income tax on the payroll, incidents on the income from work, could be the focus of this study, "Cintra said.

The law on financial responsibility imposes compensation for tax exemptions. The secretary said the government would not recreate the CPMF, for example, and study alternatives to offset a reduction in payroll.

"It can be replaced by a billing by a company, for an additional taxation, for example, in other bases, including indirect taxes, there is a series of alternatives to compare, lost by reducing the direct impact on which kind of tax the other can replace, always with the aim of not increasing the tax burden and creating more jobs, "he said.

The High Command of the Armed Forces was summoned to the Plbadto for a meeting in the Presidential Cabinet with the Economic Team, the Ministers of Defense, Foreign Affairs, Science and Technology, in order to ensure Address the fate of Embraer.

The President said he was concerned about the possibility of transferring the Embraer operation out of Brazil. The union of the two will be born a new commercial aviation company.

The new company will have a value greater than 5 billion US dollars. 80% of this capital will come from Boeing and the remaining 20% ​​from Embraer who, if you wish, will have the right to sell the stake in the new company to the Americans after five years.

Earlier in the evening, the government released a note saying that the meeting was used to present the terms of negotiations between Embraer and Boeing. The President was informed that the various scenarios had been thoroughly evaluated and that the final proposal preserved sovereignty and national interests. Therefore, the veto power of the company will not be exercised.

The government said it would receive dividends compared to Embraer's 20% stake in the commercial airline company. current jobs in Brazil will be maintained; the secrecy and priority of the government will be preserved in the definitions of defense projects; a joint venture will be created for the KC-390 military aircraft project – Embraer holds 51% of the control.