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Brazil's Lula challenged by 1st decree rejection in Congress in decades
- On Wednesday in Brasilia, Brazil's Congress voted to reject a presidential order issued in May that sought to increase the financial transactions tax .
- The decree sought to increase government revenue by imposing higher taxes on various financial transactions, such as loans, foreign currency payments, and pension fund activities, in an effort to adhere to fiscal regulations, but it quickly encountered strong opposition.
- Lula's leftist government has increased social program spending and lacks solid congressional support, while lawmakers have blocked or weakened spending cuts.
- The vote in the lower house was 98 in favor and 383 against, marking the first nullification of a presidential decree by Congress in 32 years, described as a "historic defeat."
- The government may appeal the decision to the Supreme Court or seek alternative revenue sources, but this setback highlights the challenges Lula faces ahead of his 2026 term end.
40 Articles
40 Articles
Historic Rejection: Brazil's Congress Overrides Presidential Decree
In a historic move, Brazil's Congress nullified a presidential decree by President Luiz Inácio Lula da Silva to increase a financial transactions tax. This rare legislative action, the first since 1992, signals waning support for Lula's administration and raises questions about his congressional majority ahead of elections.
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.
Winnipeg Free Press
Brazil's Lula challenged by 1st decree rejection in Congress in decades
Breaking News, Sports, Manitoba, Canada
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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