House and Senate wanted to overthrow entire decree, but at risk operations (for working capital) and credit cards for foreign purchases will have to pay financial operations tax
The Minister of Finance (PT) had a political victory over the presidents of the House (Republicans-PB), and the Senate, (Brazil-AP Union), and was able to maintain part of the decree that stipulates a discharge of the collection of IOF (Financial Operations Tax).
Motta and Alcolumbre had for Haddad, who entered into force on June 2, 2025. The deadline would win this week on Tuesday (10.Jun). Over the weekend, Motta would overthrow the economic team of the president’s government (PT), saying that Congress is against tax increases.
At the end of Sunday’s meeting (8.Jun), Motta and Alcolumbre left saying that they had gotten a victory because the IOF decree would be revised and also because the government was in accordance with a public spending review. It turns out that there was a political defeat of the presidents of the House and Senate. In practice, there will be an increase in taxes, albeit less than the initially desired by the Planalto Palace and the Ministry of Finance.
In the case of the IOF that will be charged on the so -called risk operations, the rate desired by the farm was 0.98%. There will be a 80% cut of this, but the tax will still be applied. These operations are done by numerous sectors of the economy to anticipate money you have to receive time sales – for example, the payment of sales made with credit cards. The impact will be an increase in interest practiced.
The IOF applied on purchases made with international credit cards will also be maintained. This type of operation is very common by those who travel abroad (then it reaches the middle class and the richest). But the poorest who purchases international websites up to $ 50, so -called blouses purchases will also be impacted.
One of the measures to compensate for reducing the scope of the IOF decree will also be to increase taxes in another area. In this case, the decision was to increase as soon as possible – still it is not known when this will be in force – today, the Bets pay 12%. Will pay 18%
Watch Haddad’s speech to journalists (27min):
Farm
In addition to being the winner in the dispute for maintaining part of the IOF decree, the Finance Minister put the mayor in an embarrassing situation.
On May 31, Hugo immediately suspended the excerpt from the IOF decree which was applied to drawee risk operations. The mayor made a point of publicizing this publicly and all major communication vehicles recorded.
Haddad not only did not comply with the request, but also publicly responded to this demand. Motta occupies the 3rd position in the republic hierarchy – if Lula and the deputy, Geraldo Alckmin, are prevented from commanding the country, who assumes is the mayor. That is, the Minister of Finance, who occupies a less relevant role than Motta’s, decided to score a request from the mayor.
In the statement they made late Sunday night, Motta and Haddad did not mention the matter. Everything was without explanation and only the embarrassment was left to the deputy who runs the House.
