PT leader says IOF’s overthrow is unconstitutional

The PT leader in the House, (RJ), this Friday (27.Jun.2025) that the PDL (Legislative Decree Project) 5, which fully revokes the Government’s decree on the increase in IOF, is unconstitutional.

“I made a question of order in the plenary of the House of Representatives to warn that the overthrow of the IOF decree violates the legitimate exercise of the executive’s regulatory power”, said the deputy on his profile in the X (former Twitter).

Lindbergh quoted:

• o, which allows the President of the Republic to change tax rates with extrafiscal function, such as the IOF, within the legal limits;
• A, which establishes a ceiling of 1.5% per day for the IOF rate. The presidential decree of 2025, according to the petista, set the value at 0.082%, significantly lower than the maximum limit allowed;
• which authorizes Congress to suspect only acts of the executive who exceed regulatory power. The PT leader argued that there was no exorbitance to justify the intervention of the legislature in this case.

“The sustainment of the decree without legal basis weakens the balance between powers and compromises legal certainty in conducting fiscal policy. The Constitution does not authorize Congress to overthrow regular acts of the executive only for political divergence.”wrote the deputy.

The House of Representatives approved the revocation, including votes from parties combined with the government. In the Senate, a, without nominal registration.

Lula triggers STF

The President (PT) this Friday (27.Jun) the Supreme Court (STF) to try to reverse the decision of the congress.

The Planalto Palace will argue that deputies and senators act unconstitutionally and that there was no exorbitant value in the taxes proposed by the Minister of Finance, (PT).

The AGU (General Advocacy of the Union), headed by Jorge Messias, has already begun to prepare the technical reasoning for the lawsuit.