How was Card IOF, International Accounts and Small Business Loan?

The National Congress imposed a historical defeat on the Lula administration on Wednesday night, to overthrow the decree that raised IOF rates on operations such as credit card purchases, funds transfers to international accounts through cards such as Nomad and Wise, as well as loans to small businesses. But, after all, how is the tax for these transactions?

IOF’s discharge was initially announced on May 22, with the government’s forecast to generate R $ 61 billion in two years, being R $ 20 billion in 2025 and R $ 41 billion in 2026.

However, in the face of the strong reaction of parliamentarians and the business sector, the government partially retreated on the same day.

The pressure led the presidents of the House, Hugo Motta (Republicans-PB), and Senate, David Alcolumbre (Union-AP), to grant a deadline for the Executive to revise the measure, which was done with a new decree published on June 11.

Below are the rates foreseen in this new decree, which have been in force since its publication, and how they get the text overthrow. In practice, it is as if there were no IOF’s shuttle. Everything is like before.

Yesterday’s defeat was bent: 383 votes for the overthrow of the text and 98 in favor of maintenance, highlighting the crisis between executive and legislative. It was the first time since 1992 that parliamentarians sustained a presidential decree.

The new decree provided for revenue of $ 20 billion in two years. With its overthrow, the government will have to look for new sources of resources to avoid further spending freezes.