Haddad: Government told Congress that IOF is prerogative, but it is open to negotiating
Finance Minister Fernando Haddad said on Thursday (10), during an interview promoted by the Barão de Itararé Alternative Media Studies Center, that the definition of tax operations tax rates (IOF) is the exclusive prerogative of the President of the Republic, and that this understanding has already been communicated to the National Congress. He considered, however, that the government is still open to dialogue with the legislature on the subject.
“Regarding IOF, there has been a decision, in fact, several decisions that IOF is the prerogative of the President of the Republic. Importing Tax, Export Tax, IPI, are the few things that the President of the Republic has exclusive prerogative,” explained Haddad.
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The minister also pointed out that the executive maintains an active institutional relationship with Congress and that the willingness to dialogue remains. “We never left the negotiating table,” he said.
He reiterated that the government is committed to fiscal responsibility and works to enable compliance with the 2025 and 2026 tax targets.
“We will build the budget of 2026, the fiscal goals of 2025 and 2026, because it is good for Brazil. It is not because it is good for President Lula. No, it is good for Brazil.”
Commenting on tax reform and ongoing fiscal adjustments, Haddad again defended a greater contribution of super rich and said that the government’s focus is on expanding the revenue base without penalizing the poorest population. “Fiscal justice is necessary? We agree that it is. But it cannot, once again, be made on the base of the pyramid.”
The minister illustrated this inequality in comparing the tax burden of different lanes. “A public school teacher pays 10% withdrawn income tax at the source, she doesn’t even see the color of money. And a person who earns one million a year is not willing to pay 10%.”
