Lula meets with Hugo Motta and ministers amid negotiations by tax package

President Luiz Inacio Lula da Silva meets this Saturday with the mayor, Hugo Motta, and with ministers, at the palace of Alvorada, amid negotiations of the fiscal package proposed by the farm holder, Fernando Haddad.

Also present are the Ministers of Institutional Relations, Gleisi Hoffmann, and Casa Civ, Rui Costa, as well as former Mayor Arthur Lira (PP-AL).

Last Thursday, Hugo announced that he will vote next Monday the urgency of a project that overthrow the new decree of the financial operations tax (IOF), resisting the parliamentarians, published the day before. The government also issued Provisional Measure (MP) in partial replacement to IOF.

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– We have no way not to guide the urgency at this time. At the meeting this Thursday, the benches of the parties that called for the overthrow of the IOF decree totaled 320 deputies, the dissatisfaction continues. What Congress is willing to discuss is to combine with the policy of increasing taxes a package of cuts. But there is no commitment to vote on the merits immediately, which may make alternatives emerge. We have to wait for tax solutions, with dialogue – told Globo that day.

For the urgency to be approved, the favorable vote of 257 of the 513 deputies is required. This instrument allows the project to be analyzed directly in the plenary, without having to go through the commissions, which accelerates taxation.

In the vanity of the theme, there are already three decrees on the subject. The first one published on May 22 raised the rate of various operations. On the same day, the government retreated only in taxation of shipments from Brazilian funds abroad.

On Wednesday, a new decree was edited, after the resistance of parliamentarians and indications that the whole measure would be overthrown. This new publication has reduced the impact of the most controversial changes, without turning back totally on the increase in IOF.

Also on Wednesday night, the government published an MP with compensation measures to changes in IOF.

Among the proposals are the taxation of real estate and agro -exempt letters of credit, today, discharge of tax for fintechs and bets. This regulation is valid for 120 days and only loses its effect during this period if it is returned by the president of Congress, Senator Davi Alcolumbre (Union-AP). The MP will have as rapporteur the petista deputy Carlos Zarattini (SP). As part of the agreement, the party will not have the rapporteur of the Budgetary Guidelines Law (LDO), a function that will be with Deputy Gervásio Maia (PSB-PB).

Currently, the government foresees a primary deficit of $ 31 billion this year, at the lower limit of the goal. The economic team reached this projection after freezing R $ 31.3 billion from the budget and providing for a collection of R $ 20.5 billion with IOF originally.

The whole turnaround in the measures occurred despite a meeting on Sunday between Haddad, Motta, Alcohumbre and leaders at the base. Centrão and opposition parliamentarians increased pressure during the week against the initiative.

The government estimates raising R $ 31.4 billion by 2026 with the MP. The expected revenue is explained almost entirely as it closes loopholes for tax compensation considered improper by the economic team. The estimated collection with compensation is $ 10 billion in 2025 and also in 2026.

In an event in Minas Gerais on Thursday, Lula stated that the climate in the House of Representatives is “very bad”. Without quoting names, Lula stated that “people are learning to live on lies.”

– We are living a very unpleasant moment in the world, there is some anger in the air, there is some discomfort between humanity, a lot of intrigue, hatred and curse. Even in the chamber the climate is very bad. There are deputy who does not want to talk, just want to catch mobile, look in his face, speak a nonsense and move on. People are learning to live on lies, ”he said.