I am ashamed of the judiciary

Congress overturns IOF increase and imposes defeat on the government

Chamber and Senate reject Lula's decrees that raised IOF rates and created additional taxation on cryptoassets.

In a historic defeat for the government of President Luiz Inácio Lula da Silva (PT), the National Congress overturned the three decrees that raised the rates of the Financial Operations Tax (IOF) in votes held on the night of Wednesday, June 25.

With the decision, public accounts remain under pressure, while the relationship with parliamentarians deteriorates even further. The government projected an increase in revenue of R$ 20.5 billion in 2025 and R$ 40.1 billion in the following year.

The Chamber of Deputies approved the bill that repeals the decrees by 383 votes in favor and 98 against. In the Federal Senate, there was no vote count – the approval was symbolic. Since 1992, during the government of Fernando Collor de Mello, the Congress has vetoed a presidential decree.