The Chamber of Deputies signals agreement on IOF (Tax on Financial Operations) and seeks a "middle ground" with the government.
Members of Parliament agree to an increase in the tax rate on already taxed transactions, but want the removal of a new tax on previously exempt transactions.
247 - Leaders in the Chamber of Deputies have indicated they are willing to accept a "middle ground" regarding the impasse created by the presidential decree that altered the collection of the Tax on Financial Operations (IOF). This information comes from the newspaper... The Globe.
A proposal being discussed among lawmakers envisions maintaining the increased tax rate on already taxed transactions, provided that the tax ceases to apply to previously exempt transactions.
The move comes amid talks between the Legislature, the federal government and the Supreme Federal Court (STF). This Tuesday (15), representatives from the Chamber, the Senate and the Executive are expected to meet with Minister Alexandre de Moraes in search of an agreement to resolve the impasse.
Among the points under debate, allies of the Speaker of the House, Hugo Motta (Republicanos-PB), are advocating for the exclusion of so-called "said risk" — a type of business loan used to anticipate receivables by retailers and industries — and VGBL private pension plans from the new tax. Both operations became subject to taxation with the issuance of the decree in May, but were previously not covered by the IOF (Tax on Financial Operations).
According to deputies close to Motta, the government made a mistake in imposing the tax on previously exempt transactions, which, according to them, constitutes the creation of a new tax. Since this is a change of a tax nature, parliamentarians argue that it should be approved by the National Congress. However, increasing tax rates on existing transactions is seen as a prerogative of the Executive branch.
Discussions between the branches of government began during a trip to Lisbon, where Hugo Motta participated in judicial events with ministers of the Supreme Federal Court. From there, the attempt to construct a negotiated solution to the issue began.
The political environment has also been influenced by the new diplomatic tension with the United States, following statements by President Donald Trump threatening to raise tariffs on Brazilian products. The crisis has united the government and part of Congress in defense of the national economy.
"Without a doubt, this crisis caused by Trump brings the center and the government closer together, cooling down the previous IOF crisis," stated Congressman Mário Heringer (PDT-MG), the party's leader in the Chamber of Deputies.
