Congress asks STF to valide a decree that overturned an increase in IOF of the Lula administration
The House of Representatives and the Federal Senate asked on Friday (11) to the Federal Supreme Court that declares the Legislative Decree approved by the Congress that overturned the increase in the tax on financial operations (IOF) decreed by the Lula government.
The demonstration was filed four days from the conciliation hearing marked by STF Minister Alexandre de Moraes between the Legislature and the Executive, to find a solution to the subject.
“The edition of the Executive Decrees took place with deviation from purpose, contrary to the extrafiscal purpose that justifies the mitigation of the principles of legality and tax priority. Factical elements demonstrate the collection motivation, revealed by official pronouncements and the tax context of the measure, disregarding the regulatory purpose required,” says the congress in the document.
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The opinion was issued in the midst of the actions dealing with the IOF in the Supreme, considering a deadline that was given for the legislature to comment on the processes moved by political parties on the subject.
In the document, Senate and House law firm maintains that the decrees issued by the government Luiz Inacio Lula da Silva about the IOF had “clearly collecting objectives (harmonizing tax policy, preserving the objectives of the new tax framework, with measures to balance income and expenses)”.
“The executive cannot, under the pretext of performing regulatory function, use paragraph 1 of article 153 – which deals with the competence of the Executive Power to change the rates of some taxes – with a true purpose of collection, under penalty of deviation of purpose (also called diversion of power) and, ultimately, constitutional violation,” says the opinion.
The Congress argues that it approved the overthrow of the Executive’s decree by “recognizing the incongruity between the purpose thought by the original constituent for the flexibility of taxpayer guarantees and the (real) purpose” of the Executive’s measures.
The document also highlights the argument that the Lula Government’s decrees “exorcated the powers of the jurisdiction conferred to the Executive because they extend taxation to the hitherto not taxed hypotheses.”
As Estadão/Broadcast, Centrão leaders have shown that they can accept an increase in IOF only about modalities that were already taxed before the decree issued by Lula.
