The withdrawal from the agenda that led to the provisional alternative measure to the increase in the Tax on Financial Operations (IOF) expiring it was a deliberate choice by Congress to harm the poorest, said this Thursday (9) the Minister of Finance, Fernando Haddad. In a post on social media, the minister recalled the recent protests against Congress and hinted that the process could be repeated.
“Despite a lot of negotiation, yesterday the lobby of the privileged prevailed in Congress and overturned this measure. It was not carelessness, it was a choice. The conscious choice to take away the rights of the poorest, to protect the privileged. To shield the same old friends and force cuts against those who need the State most”, said Haddad.
As in recent days, the minister reiterated that the provisional measure, which intended to increase taxation on some investments and end exemptions for others, was intended to target the richest and bets (electronic betting companies). According to Haddad, the revenue of R$17 billion for next year would be used to guarantee investments in health, education and social security in 2026.
“The measure sought to charge the minimum amount from billionaires, banks and banks, a simple and fair operation. Protect the rights of those who earn less, charging a fair share from those who earn a lot and pay almost nothing”, he commented.
Protests
The minister highlighted that the provisional measure would help balance public accounts next year and partially fund the Income Tax exemption for those earning up to R$5,000 per month. Without directly mentioning the proposed amendment to the Constitution (PEC) that intended to shield politicians, overturned in the Senate after protests, Haddad highlighted that the population may be outraged again.
“They, once again, forgot that the Brazilian people are increasingly attentive, they know what is at stake and how the game is played, they know who defends the country, who betrays the national interest to protect family and friends. And that is why, once again, the people will show their strength and call it a day. The results of the polls need to be respected. And he was clear. Include the poor in the budget and the rich in the income tax”, concluded the minister.
Alternatives
This morning, Haddad said that President Luiz Inácio Lula da Silva intends to discuss, next week, alternatives to rebuild the federal government’s cash flow by R$35 billion (R$17 billion in 2026 and R$18 billion in 2027). The minister did not rule out the possibility that the government would use the spending cut package approved last year to cut parliamentary amendments.
Haddad also informed, upon arriving at the ministry this Thursday, that the overturning of the provisional measure (MP) will have a minimal impact in 2025. The original version of the text, however, provided that the MP would result in revenue of R$10.5 billion this year.
