Chamber votes this Wednesday on bill to overturn IOF increase.
Members of Parliament still need to vote on income tax exemption for up to two minimum wages and analyze provisional measures regarding the Social Fund and payroll loans.
247 - The Speaker of the House of Representatives, Hugo Motta (Republicanos-PB), included on the agenda for this Wednesday (25) the draft legislative decree that suspends the increase in IOF (Tax on Financial Operations) issued by the Executive at the beginning of the month, reports the Folha de S. PaulThe vote comes just weeks after the plenary approved an expedited procedure for the matter, signaling a growing tension between Congress and the Presidential Palace.
The legislative decree went ahead despite attempts by President Luiz Inácio Lula da Silva (PT) himself and ministers involved in political coordination to maintain the increase. The approval of the urgency, on June 16th, had significant support even from deputies within the government's base, exposing fissures in the government's parliamentary support.
In practice, the expedited procedure allows the decree's overturning to be decided directly in plenary session, without prior analysis in the relevant committees. Motta justified the maneuver by claiming that the tax increase "does not reflect the sentiment of the House" and that the vote will be "symbolic" to send a message to the Executive branch – a message that became stronger after the government withheld the release of parliamentary amendments.
The session should also consider the bill that updates the Income Tax table and ensures exemption for those who earn up to two minimum wages – an issue defended by both the opposition and sectors of the government to alleviate the burden on the poorest.
In addition to the draft laws, two provisional texts are blocking the agenda: Provisional Measure 1.291/2025, which authorizes the use of up to R$ 15 billion per year from the pre-salt Social Fund in popular housing programs and paves the way for the auction of surplus oil and gas with the potential to raise up to R$ 20 billion; and Provisional Measure 1.292/2025, which allows for the fully digital contracting of payroll loans by private sector workers, with reduced interest rates and installments of up to 84 months.
