Prerogatives coordinator says IOF gleaming was ‘slap in the face’ and defends judicialization – 27/06/2025 – Panel

by Andrea
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Coordinator of the Legal Group Prerogatives, aligned with the Lula administration, lawyer Marco Aurélio de Carvalho says that the increase in IOF (Tax on Financial Operations) was a “slap in the face” of the company.

He states that there was “usurpation of competences” from the Government by the legislature and therefore argues for a judicial appeal to reverse the overthrow of the decree. However, it is noteworthy that this is a decision that is up to the government, after evaluating the political implications of the gesture.

“What happened this week was a procedure that was not seen 35 years ago. There was invasion of the government’s constitutional attributions on tax matter. It is a very serious precedent that can lead to a shock between the powers,” he says.

The Lula government still evaluates if it will. The decision will be made by the president together with the Ministers of Finance, Fernando Haddad, and AGU, Jorge Messias.

According to Carvalho, there is a strong feeling in the legal community that it is possible to question the decision of the House and Senate.

“If President Hugo Motta understands that there is problems in relation to the government, we hope that, before triggering the nuclear bomb, seek a solution. That he, taking advantage of his doctor’s formation, do not overdo the dosage not to kill the patient,” says the lawyer.


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