SAO PAULO (Reuters) – The chief executives of Brazil’s largest private lenders, Itau and Bradesco, defended on Tuesday the government’s planned tax reform, emphasizing that the country is facing a “unique opportunity” for the economy.
Brazil unveiled last week the details of its proposed tax reform to overhaul its notoriously complex consumption taxes, seen as a major step in President Luiz Inacio Lula da Silva’s plan to boost growth.
“The tax reform is in the oven and maybe this is the best opportunity we have to implement it,” Bradesco CEO Octavio de Lazari said at an event organized by Brazil’s banking federation Febraban.
Lazari also mentioned other key themes of Lula’s administration, such as the new fiscal rules and a potential cut in interest rates.
“We have a very big opportunity to attract foreign investments, the world is looking at what the investment opportunities are because there is a lot of capital to allocate,” he said.
“Brazil stands out as one of the main destinations, but it still needs to adjust things… It’s an opportunity that might take another 20 years to appear again.”
Brazil is going through a unique opportunity and “these windows don’t always appear,” added Itau CEO Milton Maluhy Filho.
Maluhy Filho described the tax reform as super important, calling for a “collective vision for the country, and not one for each sector”, as the proposal is expected to be voted by the lower house of Congress next week.
(Reporting by Fabricio de Castro; Writing by Peter Frontini)
