The federal government seeks to preserve the increase in the tax on financial operations (IOF) this year and negotiate alternatives to 2026 only. According to the newspaper S.Paulo FolhaMinisters informed Congress leaders that there is no tax margin or time to replace the expected collection in 2025, and that any new fiscal compensation proposal would only have effects from the next year (and election year).
The strategy was discussed at the meeting on Wednesday (28), between Finance Minister Fernando Haddad, and the presidents of the Chamber, Hugo Motta (Republicans-PB), and Senate, David Alcolumbre (Brazil-AP Union). According to the newspaper, Haddad reiterated that there is no viable alternative in the short term and that the operation of the public machine would be compromised without the R $ 20.5 billion projected with the tax increase.
“I explained the consequences in case of non -acceptance of the measure, which would have in terms of additional contingency. We will be at a very delicate level from the point of view of the functioning of the public machine of the Brazilian State.”
On the morning of Thursday (29), Motta confirmed the content of the conversations and adopted more incisive tone. In a publication in the X, he stated that he set a period of 10 days for the executive to present an alternative plan. “We agreed that the economic team has 10 days to present an alternative plan to increase the IOF. Something that is lasting, consistent and avoid tax gambiarras just to increase the collection,” wrote the mayor.
Motta’s declaration took place before a meeting with party leaders to discuss the eventual vote on Legislative Decree (PDLs) projects nullifying the Government’s decree. More than 20 PDLs were presented and are supported by benches such as PDT, União Brasil and Republicans. The PSD has released the bench, which is mostly favorable to revocation.
Behind the scenes, according to Sheetthe government is trying to gain time and bet next week’s agenda – dominated by the 11th BRICS Parliamentary Forum – prevents the progress of revocation proposals. Lula’s allies evaluate, according to the newspaper, that they can maintain the discharge of IOF for another six months, until the approval of structuring measures. The main one would be the review of tax exemptions, which already has the support of sectors of the House.
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The government must submit its proposal by the end of next week. Otherwise, the, already adventured by Haddad and Randolfe, gains strength again.
