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Centrão parties ask STF to maintain suspension of decree that increases IOF

BySimon Rousseau Posted onJuly 4, 2025 6:30 amJuly 4, 2025 6:30 am
Centrão parties ask STF to maintain suspension of decree that increases IOF

Eight center and right-wing parties filed on Thursday, 3, a declaration of constitutionality in the Federal Supreme Court (STF) asking the Court not to reverse the decision of the House of Representatives that prevented the increase in the tax on financial operations (IOF).

The acronyms PSDB, solidarity, progressives, União Brasil, PRD, Republicans, Somos and Avante are responsible for the action. The goal would be to “avoid conflicting decisions in the courts on the subject, ensuring stability for the economy and those who depend on daily credit,” they said in a statement.

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Crucial for the government to close the accounts, IOF’s rise was rejected by the House on June 25. The case intensified the arm wrestling between the Planalto and the Congress, and on July 1, the government called the Supreme to reverse the legislature’s decision and to maintain the tax decree that increases the tax.

President Luiz Inacio Lula da Silva (PT) defended the judicialization and said that “if I do not appeal the judiciary, I no longer government the country.” The petista received support from allies such as Finance Minister Fernando Haddad and PSOL deputies.

The decision of the Chamber of overthrowing the discharge of IOF has also been used by governors to aggravate the climate of “us against them” and create an opposition between the executive and the legislature.

Read more:  Lula sends project that increases penalties for environmental crimes

In a video published on his Instagram profile, Mayor Hugo Motta (Republicans-PB) criticized the governing strategy of accusing Congress of betraying people’s interests: “Who feeds us against them ends up governing everyone,” he said.

Senate President David Alcolumbre (Union-AP) also reacted and said he will file a legislative proposal to restrict who can appeal to the STF to contest a law voted in the National Congress. The proposal is an answer to another attempt to overthrow the increase in IOF, this time conducted by PSOL through a supreme action.

Simon Rousseau
Simon Rousseau

Hello, I'm Simon, a 39-year-old cinema enthusiast. With a passion for storytelling through film, I explore various genres and cultures within the cinematic universe. Join me on my journey as I share insights, reviews, and the magic of movies!

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