The House of Representatives will vote on Monday the urgency of the bill to overthrow the new Decree on the Financial Operations Tax (IOF), published last week. The measure was announced by the President of the Chamber of Deputies, Hugo Motta (Republicans-PB), after meeting with home leaders on Thursday.
“I inform you that the College of Leaders gathered today and decided to guide the urgency of the PDL (Legislative Decree Project) that sustained the effects of the new government decree that deals with IOF. As I have said in recent days, the climate in the House is not favorable for the increase of taxes with the purpose of solving our tax problems,” wrote Motta on social networks.
For the urgency to be approved, the favorable vote of 257 of the 513 deputies is required. This instrument allows the project to be analyzed directly in the plenary, without having to go through the commissions, which accelerates taxation. The project itself, that is, the merit of the text, should not be voted on this Monday.
Amid the threat of overthrowing government measures, President Luiz Inacio Lula da Silva met with the mayor, Hugo Motta (Republicans-PB), on Sunday, at the Dawn Palace.
Also attending the Ministers of Institutional Relations, Gleisi Hoffmann, and Casa Civ, Rui Costa, as well as former Mayor Arthur Lira (PP-AL). He is a rapporteur of the government bill that increases income tax exemption for all who earn over $ 5,000 per month. The meeting lasted about an hour.
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The twists around the IOF have already yielded three different decrees on the subject. The first was published on May 22 and raised the rate of various operations. On the same day, the government retreated only in taxation of shipments from Brazilian funds abroad.
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After a negative reaction of market and parliamentarians sectors, the government published a decree “recalibrating” IOF’s values on the night of last Wednesday. With the partial retreat, the farm estimates to reduce the collection this year of R $ 19.1 billion to between R $ 6 billion and R $ 7 billion. This is the norm that is in the sights of the House and can be revoked. After the vote on urgency, a process that gives you faster to analyze a text, it will still be necessary to vote the merit.
Also on Wednesday night, the government published a Provisional Measure (MP) with compensation measures to changes in IOF. This regulation is valid for 120 days and only loses its effect during this period if it is returned by the president of Congress, Senator Davi Alcolumbre (Union-AP). The MP will have as a rapporteur a PT parliamentarian, not yet defined. As part of the agreement, the party will not have the rapporteur of the Budgetary Guidelines Law (LDO), a function that will be with Deputy Gervásio Maia (PSB-PB).
This whole turnaround occurs despite a meeting on Sunday between Haddad, Motta, Alcolumbre and leaders at the base where participants spoke of “consensus” about the measures. Centrão and opposition parliamentarians increased pressure during the week against the government’s initiative, and Motta himself changed Tom.
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The origin of the problem arises from the government’s need to close the accounts this year and in the following, so the Ministry of Finance issued collection measures, such as the increase in IOF.
Since the beginning of the discussions, the government’s argument is that eventual overthrow of the measures will lead to a scenario of stopping the public machine, when non -compulsory expenses fall to a level that makes it difficult to maintain the day -to -day government. Non -compulsory expenses pay investments, government purchases and the cost of more basic things, such as inputs and electricity bills.
At the end of May, the government announced the freezing of R $ 31.3 billion in the 2025 budget to comply with the tax rules.
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This year’s fiscal target is zero result (balance between expenses and revenues), with tolerance range between R $ 31 billion deficit and surplus of R $ 31 billion, or 0.25% of Gross Domestic Product (GDP). The budget was approved by Congress with a surplus result of $ 15 billion.
