Ministry seeks "convergence" to resolve IOF; leaders mention "caution"
The Ministry of Finance is looking for a consensus with the National Congress to find alternatives to the increase in IOF (Tax on Financial Transactions), a measure announced and partially revoked on May 22 after strong negative reactions from the market and society.
Minister Fernando Haddad is meeting with leaders of the Chamber and the Senate to discuss solutions that avoid the tax increase in 2025. The main bet of the Ministry is a linear cut of 10% in tax benefits, a symbolic gesture to the President of the Chamber, Hugo Motta (Republicanos-PB), in addition to a possible extension of the deadline for increasing transfers to Fundeb, already approved by President Lula.
Among other alternatives discussed are controlling the growth of BPC (Continuous Cash Benefit), facing resistance within the government base, and increasing taxation on electronic betting ("bets").
In the Chamber, there is strong resistance, as the tax rate was previously negotiated with the government. In the Senate, leaders admit to discussing the topic, as long as it is linked to combating illegal operations in the sector.
Parliamentary leaders assess the maintenance of the IOF increase for 2025 as unlikely, considering the political and economic impacts. There is a consensus that the government will need to demonstrate spending cuts to justify any new revenue measures.
The proposals are being kept confidential until a new round of negotiations, within the 10-day deadline agreed with the presidents of Congress. The Ministry hopes for a “good dialogue” to achieve the desired “convergence.”
Source: CNN Brazil
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