The government of President Luiz Inacio Lula da Silva (PT) and the National Congress summit resumed the dialogue on Tuesday (8) in an attempt to unlock the impasse on the increase in the IOF (Financial Operations Tax) tax rate. The meeting, held at the official residence of the mayor, Hugo Motta (Republicans-PB), ended without concrete advances.
Finance Minister Fernando Haddad reiterated that the government will make every effort to convince the Supreme Court (STF) of the constitutionality of the IOF rise, suspended by decision of Minister Alexandre de Moraes.
Hugo Motta has made it clear that there is no climate in the legislature to accept new taxes or increased taxes, defending spending cuts as an alternative to raising the collection.
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“It was a meeting to resume dialogue. We are no use. […] We are always more likely to go through the way of cutting expenses, not for the increase in taxes, ”Motta told Poder360.
Political wear
During the meeting, government representatives also showed discomfort with the campaign of criticism of Congress on social networks, played by parliamentarians as encouraged, even indirectly, by sectors linked to the Plateau and the PT.
Motta replied that this type of attack is “bad when you want dialogue.” Gleisi Hoffmann, president of the PT, was one of the first to speak publicly against virtual attacks, but wear remains.
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What is at stake
The government advocates the readjustment of the IOF tax rate as one of the measures to balance the 2025 accounts. The proposal, however, was overthrown by Congress on June 27, with significant vote in the House and symbolic approval in the Senate. In response, the executive filed the Supreme Court to try to reverse the decision.
On the 4th, Minister Alexandre de Moraes suspended both the presidential decree that the IOF increased and the congressional vote that revoked it. In practice, this prevented the new tax rate from charging and left the government on a waiting measure.
Next Steps
Hugo Motta and the chairman of the Senate Constitution and Justice Commission, David Alcolumbre (Union-AP), will meet with party leaders on Wednesday (9) to report the progress of negotiations. There is still no provision for agreement or new vote in the legislature.
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Planalto continues to bet on a favorable decision on the STF to validate the increase in the IOF rate. Meanwhile, sectors of the base and opposition are articulated to maintain the rejection of the proposal in Congress.
