Approval in the House of Representatives of the bill to overthrow the increase in the financial operations tax (IOF), on Wednesday (25), was another chapter of the crisis triggered by the decree issued by the government in May.
The mayor, Hugo Motta (Republicans-PB) guided the last-minute project, contradicted by the Planalto Palace attempt to blame Congress for an increase in the light bill of Brazilians due to the overthrow of presidential vetoes, according to interlocutors of the mayor.
Initially, there would be no relevant votes in the house this week due to the traditional celebrations of St. John. Last week, the government had an overwhelming defeat in the analysis of the urgency of the project that can overthrow the IOF decree. There were 346 votes in favor and 97 against.
According to the Ministry of Finance, the purpose of the decree was to correct distortions in tax collection, with an important collecting effect to help close this year’s accounts.
Originally, the forecast revenue was $ 20.5 billion in 2025. In the last format, the estimate is about $ 10 billion, according to the executive secretary of the farm, Dario Durigan, in an interview with Globe.
See below the main events of the crisis:
May 22: Edition of the first IOF decree, with increased rates charged in corporate credit operations, in some exchange operations for individuals and legal entities, as well as pension plans. The measure generated strong negative repercussion in the financial market, which generated a retreat on the same day by the government in changes related to remittances of abroad and individuals with investment objective. Thus, the expected collection fell to R $ 19.1 billion in 2025.
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May 23: Deputies began to present projects of Legislative Decree (PDL) to support the effects of the decree.
May 29: Motta raised the tone and set a period of ten days for the economic team to have alternatives to the increase in IOF. Motta argued that structuring measures were proposed and said the solution needed to be something that would avoid “tax gambiarras just to increase the collection.”
June 3: At lunch at the Alvorada Palace, Finance Minister Fernando Haddad presented to President Luiz Inacio Lula da Silva and the Congress summit the masters of the measures studied to replace part of the IOF decree. At the time, Haddad said there was alignment with Motta and Senate President David Alcolumbre (Union-AP). The mayor spoke of “tune” and Alcolumbre said that the dialogue on the subject had been established.
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June 8: Haddad presents parliamentary leaders of the combined base to the alternative proposal to IOF at a dinner at the official residence of the House. After the meeting, the minister announced that the government would increase taxation on Bets and end the exemption of encouraged securities, such as LCA and LCI, with the adoption of a 5% rate via Provisional Measure (MP). Haddad also revealed that the government would raise CSLL tax for fintechs. The package also included increase in income tax collection on the distribution of interest on equity (JCP) and the unification in 17.5% of the IR charged in financial investments.
June 9: The mayor said there was no commitment to approve MP measures. – There is no Congress, it is important here to record, the commitment to approve these measures that come in the MP. The MP will be sent only so that, from an accounting point of view, the contingency has not to be increased – said at an event of the newspapers Valor Econômico, O Globo and Radio CBN.
June 11: Public Government MP and edits a new IOF decree with changes in the most controversial points, reducing, for example, the taxation on the drawee risk operations.
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June 13: Motta Target Voting on the urgency of the project that overthrow effects of the increase in IOF to June 16.
June 16: by 346 votes in favor and 97 against, Chamber approves the urgency of the project that sustains effects of the decree. With this, proposal could be voted directly in the plenary of the house.
June 24: Motta decides to guide a vote on the merits of the project that overturns IOF decree.
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June 25: House of Representatives approved a Legislative Decree (PLD) bill to revoke the last government decree that changed the IOF
