IOF Crisis Distance Hugo Motta from the Lula administration

by Andrea
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STF minister today suspended the effects of Lula’s decrees dealing with the tax, and also determines a conciliation hearing between government and the National Congress on the subject

Ton Molina/PhotoAna/Estadão Content
‘We are still open to institutional dialogue, with respect and serenity, always looking for the balance of public accounts and the sustainable growth of the economy,’ he wrote in the X

Commenting on the decision of the Federal Supreme Court () that suspended the effects of decrees-the Government and the National Congress-which deal with the tax on financial operations (), the mayor, said on Friday (4) that the measure is “in tune” with the desire of the majority of the House Plenary and also society.

“Minister Alexandre de Moraes’s decision avoids the increase in IOF, in line with the desire of the majority of the House of Representatives and society.

The decision

By precautionary measure, the Minister of the STFSUSPE the effects of decrees dealing with the IOF. In the decision, he also determines the holding of a conciliation hearing between the Federal Government and the National Congress on the subject, scheduled for July 15 at the Court’s Audience Room in Brasilia.

“Communicate to the President of the Republic and the President of the National Congress, for the science and immediate compliance with this decision, requesting them information within five days.”

The meeting of the Attorney General’s Office (PGR) and the Attorney General of the Union (AGU) should also participate in the meeting. “After the conciliation hearing, the need to maintain the injunction granted will be analyzed,” said the minister.

Understand IOF’s imbroglio

In late May, the president issued a decree that increased the IOF for credit, insurance and exchange rate operations. The document was part of measures prepared by the Ministry of Finance to reinforce government revenues and meet the goals of the tax framework.

In early June, the government reversed part of the IOF elevations, but issued a Provisional Measure (MP) that increases other taxes. Also in June, the overthrow of the decree was guided by the mayor, Hugo Motta. About two hours after being overthrown, the decree was also rejected in a symbolic vote in the Federal Senate Plenary.

Last Tuesday (1st), the Attorney General of the Union () filed a lawsuit with the Federal Supreme Court (STF) in order to reverse the overthrow of the decree. According to the Minister of AGU, Jorge Messias, the Declaratory Action of Constitutionality (ADC) was presented after a request made by Lula and based on technical and legal study requested from the agency the previous week.

Minister Alexandre de Moraes was chosen Rapporteur of ADC filed by AGU to recognize the validity of the decree issued by the President. Moraes will command the case because it already acts as a rapporteur of two processes that deal with the matter. The actions were filed by PL and PSOL. There is no date for the minister’s decision.

*With information from Agência Brasil

Posted by Nátaly Tenório

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