AGU says IOF action defends government without attacking Congress

by Andrea
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Jorge Messias states that the legal way chosen is different from that followed by PSOL, which also went to the STF

The Minister of (General Advocacy of the Union), Jorge Messias, said on the 3rd (1st.Jul.2025) that the difference between government action in the Federal Supreme Court to ensure the increase in IOF (Tax on Financial Operations) and the action of PSOL, filed 4 days earlier, is in its target.

Messiah stated that the ADC (Declaratory Action of Constitutionality) of the Government (PDF – 6 MB) defends the decree of President Luiz Inacio Lula da Silva (PT) that raised the tribute. ADI (direct action of unconstitutionality) by the party (PDF – 334 kb) “attack directly ” An act of Congress, which was the PDL (Legislative Decree Project) approved to overthrow Lula’s decree.

AGU this Thursday (1st.Jul) the judicialization of the case of IOF. The action is, but the government stated that it asked the Supreme Court to also stay with Minister Alexandre de Moraes, who already reports PSOL’s demand because of “clear connection”Among the petitions.

Our action is in favor of the act adopted by the President of the Republic. She has a logic, she has a rationality, ” declared Messiah to journalists. “The president’s concern is not to attack an act of Congress. What the president wants is for the Supreme to appreciate an attribution that the Constitution has given him”.

In practice, the government wants the Supreme Court to say that the increase in IOF is the responsibility of the executive, so it could not have been overthrown by Congress. THE Poder360 On the night of Monday (30.jun) that the action would be filed this 3rd. According to Planalto allies, the political decision was already mature enough.

“The measure adopted by the National Congress eventually violated the principle of separation of powers”Messiah said in an interview with journalists. “The legislative decree eventually generated legal uncertainty in tax relations, generating economic risk to the interests of the National Treasury”he said.

This is not the first time Lula goes to the Supreme because of issues related to the collection. that exemption (exemption or decreased benefits) of payments to 17 business sectors was considered unconstitutional. The impasse ended in an agreement with Congress for the gradual end of the exemption.

The AGU is the body responsible for representing the Union in lawsuits and provides legal advice to the federal government. In a simplified summary, it is like the executive’s “lawyer”.

The IOF IDE

The Lula government wanted to get the financial tax to strengthen the collection, avoid more budget blockages and thus comply with the tax framework. The IRS estimates that the discharge of IOF would bring to the Ministry of Finance of.

Congress and the business community reacted against the measure. A and decided to overthrow the text that increased the IOF on Wednesday (25.jun). In the Casa Baixa, they were 383 votes in favor revocation and 98 contra. PT, PV, PC, PSOL, PSOL and Network parties guided a vote against. União Brasil, PP, PSD, PDT, PSB, MDB and Republicans, who have 14 ministries, voted in weight in favor of the proposal. The approval was Lula’s worst defeat and Haddad in the House in the current government.

In the Senate, the vote was symbolic – nominal counting. After the vote, the President (União Brasil-AP) that the decision was a “Defeat for the government built on several hands”.

Eis the IOF’s chronology:

– In the afternoon, economic team increases IOF via decree to strengthen the collection, with an estimated impact of R $ 20.1 billion in 2025;

● – Near the dawn, the Ministry of Finance reviews part of the decree, reducing the potential collection to R $ 19.1 billion;

– After a meeting, Congress gives Haddad 10 days to present alternatives to the IOF decree;

● Haddad announces a reduction in IOF discharge and sending a provisional measure with increasing other taxes to compensate;

● – Haddad launches provisional measure with increasing other taxes and with changes in tax offsetting, with potential collection of R $ 10 billion in 2025;

– Chamber approves urgency for voting the project to overthrow the discharge of IOF;

●-by surprise, the mayor, Hugo Motta (Republicans-PB), announces the project vote at 11:35 pm on a social network;

● – House approves decree fall by 383 votes in favor and 98 against;

● – Senate drops in symbolic vote (without voting count);

● – Government officially triggers the Supreme Court to judicialize the impasse.

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