Congress movement pressures government to review tax increase measures; merit of the proposal will still be analyzed
The House of Representatives approved, on Monday (sixteen), by 346 votes to 97, the emergency regime for the project aimed at overthrowing the new decree of the federal government that raised the rates of . The merits of the proposal has not yet been voted by parliamentarians. The decision to guide the urgency occurred after a strong dissatisfaction of deputies with recent tax increases. With the approval, the text can be analyzed directly in the plenary, without the need to go through the commissions of the house, accelerating the processing. In the vote, only the PSB and the Federation formed by PT, PCdoB and PV guided against the application. The leadership of the government and the majority released the benches.
The project targets the decree issued by the Executive on Thursday (eleven), which promotes a “recalibration” in the IOF rates-the third tax change since May. The opposition presses so that the merit is considered later this Monday, but the agreement between party leaders, according to CNN Brazil, provides for more deadline for the government to present new expense cut measures. The decision to vote the urgency was articulated by the mayor, Hugo Motta (Republicans-PB), during a meeting with leaders of different parties. Behind the scenes, the federal government tried to avoid the advancement of the project. On the afternoon of Monday, the ministers Rui Costa (Casa Civil) and Gleisi Hoffmann (institutional relations), as well as leaders of the ruling base, met with Motta in an attempt to contain the movement.
Upon arriving at the plenary, the mayor recognized the climate of dissatisfaction. “The government is aware of dissatisfaction in Congress and is committed to presenting a schedule of expenditure cuts. This vote today will be very symbolic about the feeling of the house,” he said. For the decree to be effectively overturned, in addition to the approval of the merits in the House, the bill will also need to go through the Senate.
Understand the case
The increase in IOF was initially announced on May twenty -two, but after a strong negative reaction from the financial market and the business community, the government partially retreated. The first revocation was aimed at tax investment taxation abroad. Even with the changes, dissatisfaction persisted in Congress. Last week, the government published a new decree, reviewing the rates again. Changes are part of a package of measures to raise the collection in order to balance public accounts. The economic team provided for an impact of up to R $ 18 billion by 2025 and R $ 37 billion in 2026. With “recalibration”, the collection estimated was reduced to about R $ 7 billion, but the official number has not yet been released by the Ministry of Finance.
