{"id":94792,"date":"2025-07-04T21:34:22","date_gmt":"2025-07-05T00:34:22","guid":{"rendered":"https:\/\/murray.adv.br\/?p=94792"},"modified":"2025-07-04T21:34:22","modified_gmt":"2025-07-05T00:34:22","slug":"supreme-court-suspends-iof-decrees-calls-conciliation-hearing","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/supreme-court-suspends-iof-decrees-calls-conciliation-hearing\/","title":{"rendered":"Supreme Court suspends IOF decrees, calls conciliation hearing"},"content":{"rendered":"
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Justice Moraes questions legitimacy of tax hike while urging better dialogue between branches of government<\/strong><\/em><\/h6>\n<\/div>\n<\/div>\n
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07\/04\/2025\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Supreme Federal Court (STF) Justice Alexandre de Moraes on Friday (4) suspended both the executive and legislative decrees related to Brazil\u2019s Financial Transactions Tax (IOF) and summoned representatives from the Presidency, Senate, Chamber of Deputies, and Office of the Prosecutor General (PGR) for a conciliation hearing on July 15.<\/p>\n<\/div>\n

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The decision stems from cases filed by the Liberal Party (PL) and Socialism and Freedom Party (PSOL), as well as the Attorney General\u2019s Office (AGU), regarding the legality of the IOF hike. While Mr. Moraes acknowledged the executive branch\u2019s authority to adjust tax rates, he expressed concern over the \u201cnature\u201d of the recent increase.<\/p>\n<\/div>\n

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\u201cThere is a serious and well-founded doubt about whether the presidential decree was used to adjust the IOF for purely fiscal purposes. In a preliminary assessment, this is enough to consider a potential abuse of power. If the president\u2019s autonomous decrees are driven by a deviation of purpose, they may violate the principle of proportionality,\u201d Mr. Moraes wrote.<\/p>\n<\/div>\n

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He granted a preliminary injunction suspending Executive Decrees 12.466\/2025, 12.467\/2025, and 12.499\/2025, as well as Legislative Decree 176\/2025. The decision will now be sent to the full court for review, though no date has been set.<\/p>\n<\/div>\n

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Allies with ministries also filed suit<\/p>\n<\/div>\n

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In addition to the actions brought by the PL, PSOL, and AGU, a fourth case was filed Thursday night (3) by parties that hold ministerial positions in the Lula administration. These parties are asking the STF to declare constitutional the legislative decree that overturned the IOF increase.<\/p>\n<\/div>\n

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Among the parties behind this request are Brazil Union, Progressives, and Republicans, which together control five ministries, including Tourism, Communications, Social Development, Sports, and Ports and Airports. Also joining the suite are Brazilian Social Democracy Party (PSDB), Solidarity, Democratic Renewal Party (PRD), Podemos, and Avante. They argue that \u201cCongress acted properly in blocking measures that raised taxes without following the legislative process.\u201d<\/p>\n<\/div>\n

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Court battle deepens political crisis<\/p>\n<\/div>\n

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The AGU\u2019s move to file a case with the STF on Tuesday (1) to restore the IOF hike further strained relations between the Lula government and Congress. Lawmakers, particularly congressional leaders, were already upset over aggressive messaging on social media by the Workers\u2019 Party (PT), which included AI-generated videos portraying Congress as \u201cthe enemy of the people.\u201d<\/p>\n<\/div>\n

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These attacks, part of a broader \u201crich vs. poor\u201d narrative pushed by the government, specifically targeted Chamber Speaker Hugo Motta (Republicans of Para\u00edba). The polarization strategy had already drawn criticism from lawmakers and is expected to further deteriorate relations with the Legislature. In response, the Brazil Union-Progressives federation released its own video rebutting the campaign over the weekend.<\/p>\n<\/div>\n

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Yesterday, before his party filed its own case against the executive, Congressman Arthur Lira (Progressive Party, PP, Alagoas), speaking at an event in Lisbon, called for de-escalation among all branches of government. \u201cEveryone needs to take a step back\u2014the Legislative, Judiciary, and Executive. They need to sit at the table and resolve this without letting tensions get this high,\u201d said Mr. Lira, who previously served as Speaker of the Chamber.<\/p>\n<\/div>\n

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According to him, both the Executive and Legislative were within their rights in the IOF dispute. \u201cThis will only be resolved through dialogue\u2014and that\u2019s what we\u2019ve been working around the clock to make happen,\u201d he said.<\/p>\n<\/div>\n

*By\u00a0Tiago Angelo, Valor\u00a0\u2014 Bras\u00edlia<\/p>\n

Source: Valor International<\/p>\n

https:\/\/valorinternational.globo.com\/<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Justice Moraes questions legitimacy of tax hike while urging better dialogue between branches of government     07\/04\/2025\u00a0 Supreme Federal Court (STF) Justice Alexandre de Moraes on Friday (4) suspended both the executive and legislative decrees related to Brazil\u2019s Financial Transactions Tax (IOF) and summoned representatives from the Presidency, Senate, Chamber of Deputies, and Office […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[26222,26221],"class_list":["post-94792","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-calls-conciliation-hearing","tag-supreme-court-suspends-iof-decrees"],"yoast_head":"\nSupreme Court suspends IOF decrees, calls conciliation hearing - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/supreme-court-suspends-iof-decrees-calls-conciliation-hearing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Supreme Court suspends IOF decrees, calls conciliation hearing - 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