US EditionBrazil's Lula challenged by 1st decree rejection in Congress in decades
- Brazil's Congress has overturned President Luiz Inacio Lula da Silva's decree raising the financial transactions tax, impacting certain credit and foreign-exchange operations.
- This decision is a setback for Lula's government, which aimed to boost revenue and limit spending freezes.
- Lula's efforts to negotiate with Congress have failed, leading to broader problems with his economic agenda and blocked proposals.
- The government may seek to overturn Congress' decision through the Supreme Court or find alternative financial strategies.
28 Articles
28 Articles
Brazil Congress nixes Lula's financial transactions tax hike
Both chambers of Brazil's Congress on Wednesday overturned a decree from President Luiz Inacio Lula da Silva raising the financial transactions tax (IOF) on certain credit, foreign-exchange and private pension plan operations.
Brazil's Lula challenged by 1st decree rejection in Congress in decades
Brazil's Congress on Wednesday nullified a presidential decree for the first time in decades, rejecting a move by President Luiz Inácio Lula da Silva to hike a financial transactions tax and signaling flagging support for his left-of-center administration.
By a massive vote of 383 votes to 98, the Brazilian deputies approved the repeal of a government decree introducing an increase in the tax on financial transactions, i.e. a scathing defeat for the left-wing president.
When Luiz Inácio Lula da Silva, 79, won the elections in Brazil for the minimum, at the end of 2022, he already warned that the really difficult began then. The veteran leftist had never ruled under such adverse conditions. He leads a well-viable coalition of government and his own are in a minority in Congress. In that context, President Lula suffered this Wednesday night a humiliating parliamentary mutiny to which several of the parties with m…
Brazil lower house nixes Lula's financial transactions tax hike
Brazil's lower house of Congress on Wednesday overturned a May decree from President Luiz Inacio Lula da Silva raising the financial transactions tax (IOF) on certain credit, foreign-exchange and private pension plan operations.
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