Meeting between Government and Congress summit on the 3rd night was to “resume dialogue”, but a meeting was inconclusive about how to resolve the impasse
Representatives of the Summit of Congress and the Government of the President (PT) gathered on the night of Tuesday (8.Jul.2025). The idea was to resume dialogue between the two parties regarding the impasse of the suspension of the highest rates to the IOF (Financial Operations Tax). The meeting was inconclusive, but a divergence was emphasized:
- government – The Finance Minister (PT) said he will make all efforts to convince the Federal Supreme Court about the constitutionality of the IOF collection with larger rates;
- Congress -The mayor, (Republicans-PB), who provided the official residence he occupies for the meeting, again said that a new tax or elevation of current rates would be well received within the legislature. He said the government needs to look for ways to cut spending.
Participated in the meeting:
- Gave it alarthrumb (Brazil-AP Union), Senate;
- Hugo Motta (Republicans-PB), of the House;
- Fernando Haddad (PT), from the farm;
- Hoffmann (PT-PR), of institutional relations;
- Jorge Messias, AGU (General Advocacy of the Union);
- Randolfe Rodrigues (PT-AP), Government in Congress;
- Jaques Wagner (Pt-ba), of the Senate government;
- José Guimarães (For-what), of the PT in the House.
On Wednesday (9.Jul.2025), Hugo Motta and David Alcolumbre will talk to the main party leaders in the House and Senate to tell how was the climate of the meeting. There is nothing conclusive even if it can give rise to some kind of agreement.
The government decided to increase the IOF to close the 2025 accounts. Congress overturned on June 27, 2025 the presidential decree with a significant vote in the House and symbolic approval (without vote registration) in the Senate. The government went to the Federal Supreme Court to try to annul the decision of deputies and senators. Opposition parties also entered the STF to keep the IOF’s overthrow.
On July 4, 2025, Minister Alexandre de Moraes decided to suspend the effects of the IOF Presidential Decree and also the congressional vote overturning the increase in this tax. In practice, the dispatch of Moraes was bad for the government. IOF with larger rates, as Fernando Haddad wanted, continued without being charged.
To get an idea of how the measure reduces government collection just see June data: a collection of $ 8 billion IOF. This amount is the highest recorded for 1 single month since 2005. Now, in July, the fee has been charged again with previous percentages. This should be frustrated by federal revenues by about $ 2 billion.
“It was a meeting to resume dialogue. We are no use. Tomorrow I will report to the leaders a little of this willingness to talk and say that we are available to have a dialogue and that we know of government difficulties to raise. But we are always more likely to go through the way of cutting expenses, not to increase taxes.”said Hugo Motta to Poder360.
During the meeting, the government representatives said they were against the campaign of criticism on social networks that targets Congress and Hugo Motta. The mayor said he understood, but that this kind of stimulus is bad when the dialogue is desired.
The government has repeated that it does not endorse criticism of Motta and Congress. Gleisi Hoffmann to say that he disagreed with this kind of strategy. It turns out that in the summit of the Legislature the understanding is that the Planalto and the PT, veiled, released their militancy to continue the campaign.
