A AGU (Advocacy General of the Union) should present this Monday (14) to STF (Federal Supreme Court) the government’s prior manifestation on the presidential decree that increased the rates of the IOF (Financial Operations Tax).
The president Luiz Inácio Lula da Silva (PT) Added last Thursday (10). According to him, decrees are the exclusive competence of the Presidency of the Republic, not of the National Congress.
“I will keep the IOF. If you have an item on the IOF that is wrong, we review that item. But IOF will continue,” said Lula.
In early July, Minister Alexandre de Moraes, rapporteur of the case in the Supreme, who had annulled the increase. Moraes also gave five days for executive and legislature to present justifications.
On Friday (11), o.
House and Senate argue that the government used the IOF for a purpose. They claim deviation of purpose, as the tax should be used only as an instrument of economic regulation.
Since the overthrow of the decree, the government has argued that the measure is constitutional and that it is exclusively for the Union to institute taxes on credit, exchange, insurance and securities operations.
Next Tuesday (15), representatives of the Executive and the Legislature meet at a conciliation hearing at the STF, mediated by Moraes, in search of a solution to the impasse.
parliamentarians are articulating proposals to present during the hearing, while the government must defend the validity of the decree.
Finance Minister Fernando Haddad confirmed his presence at the meeting and said he will argue that “the act is constitutional.”
Understand the impasse
The conflict began in May, when the federal government issued the decree increasing the IOF rates to reinforce the collection and comply with the fiscal target.
The measure generated a strong reaction in Congress and the financial market. In response, the government proposed adjustments and discussed alternatives in meetings with party leaders and Haddad. Even with the changes, parliamentarians remained dissatisfied and charge spending cuts instead of increasing taxes.
Two weeks after the proposal revised, Câmara and Senate approved the PDL that overturned the presidential decree, starting the legal confrontation that will now be debated in the Supreme Court.
