Rui Costa says government will defend the full maintenance of the decree on IOF

In an interview with TV Cultura’s Roda Viva program, on the night of Monday (7), the Minister of the Civil House, Rui Costa, said that the government will defend, in the Supreme Court (STF), the full maintenance of the decree that raises the rates of the Financial Operations Tax (IOF). The measure had been suspended by a legislative decree approved by the National Congress in June Findal, but the Planalto maintains that the increase is necessary to ensure fiscal balance.

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According to the minister, the decree raising the IOF rates had already been previously negotiated with party leaders, and accused parliamentarians of breaking an agreement signed with the government of President Luiz Inacio Lula da Silva. Costa also defended the need to “revoke” the relationship with allied base parties that voted to overthrow the measure in Congress.

“Yes, we will defend the integrality of the decree, because the negotiation of the merit had already been done,” said the Minister of the Civil House, Rui Costa, when asked if the government would seek a compromise in the negotiations. “It is not just about defending IOF as a regulatory instrument, but of defending the ability to rule this and any government. If the government can no longer edit decree, it is unable to make concierge, the government is over.”

Last week, Minister Alexandre de Moraes of the Federal Supreme Court (STF) suspended the decrees issued by both the government and congress related to the IOF and summoned a negotiating table between the parties for next week. The decision seeks to build a consensual solution for the impasse involving the increase in tax rates.