Lula decides to go to the Supreme Court against IOF decree, says newspaper

The president decided to file a lawsuit against (STF) against (IOF), said the newspaper The globe This Friday (27).

According to the newspaper, the decision was made by Lula after a long conversation with the Chief Minister of the Attorney General of the Union (AGU), Jorge Messias. It is up to AGU to represent the government in actions in the Supreme.

Shortly thereafter, in a statement, AGU stated that it studies, at the request of Lula, “legal measures to be adopted” to preserve the validity of the IOF decree and that, once the legal analysis is finalized, it will announce a decision on the subject.

Also this Friday, and summoned a demonstration on the streets against what he called “the right boy in Congress to Lula and the people”.

“The counterattack started,” said Boulos on social network X. “PSOL will enter today with action at the Supreme Court to reverse the unconstitutional overthrow of the IOF decree.

Finance Minister Fernando Haddad had already declared an interview with the newspaper S.Paulo Folhapublished on Thursday (26), that and that the executive evaluated to appeal to the Supreme Court against the decision of Parliament.

The Lula government has adopted the speech that the IOF decree aimed to tax the richest, which have been called by Haddad “coverage residents,” and would be part of a series of measures aimed at “tax justice.”

Critics of the measure, in turn, argue that instead of attacking public spending, the government has sought to increase taxes to raise revenues and close its accounts.

If confirmed, the contestation of the overthrow of the IOF decree by the Government with the Supreme has potential to further tension the already troubled relationship between executive and legislative.

Tensions occur at a time when the Planalto Palace seeks to approve other priority measures in Congress, as a provisional measure that ends the exemption of taxes for certain financial investments and the bill exempting from income tax who earns up to 5,000 reais per month.

The MP that changes taxation on financial investments, as well as the IOF decree, are among the measures defended by Haddad as necessary to balance the public accounts.