In a recent meeting, the presidents of the Chamber of Deputies and the Senate have given Finance Minister Fernando Haddad a 10-day ultimatum to reverse the proposed increase to the IOF (Tax on Financial Operations). According to reports, if no action is taken by the week of June 9, Congress is prepared to introduce a legislative decree project to nullify the economic team’s measure.

The discussion took place on Wednesday, May 28, 2025, at the mayor’s official residence. Key figures present included Minister of Institutional relations of the Planalto palace, Gleisi Hoffmann, executive secretary of the Ministry of Finance, Dario durigan, Senate government leader Jaques Wagner, Government leader Randolfe Rodrigues, and the government leader, José Guimarães.

Chamber President Hugo Motta stated in a telephone interview on Thursday, May 29, 2025, “We said that not to say that we do not want to collaborate with the government, that we will give a deadline for the economic team to study alternatives. In 10 days they can present an alternative. We do not want to disturb, but we need a solution. It will be about 10 days of waiting.”

Potential Alternative Tax solutions

Among the potential solutions discussed with Haddad were taxing companies,BETS (Bonds Equivalent to Stocks),increasing taxation on fintechs,and implementing more structured measures. Motta emphasized the need for lasting solutions, stating, “We have to have something structuring and not gambiarras all the time to increase the collection.” He also advocated for reviewing tax exemptions, discussing revenue linking, and voting on administrative reform.

“We have to have something structuring and not gambiarras all the time to increase the collection.”

Motta also shared insights from the meeting on his X profile.

When asked what he and Senate President David Alcolumbre told Minister Fernando Haddad about the increase in IOF’s rates, Hugo Motta said, “We told him that there is wide dissatisfaction with the measure. If we guide the PDL vote today which proposes to nullify this increase in IOF there is real chance that the text is approved.Even more in the Senate than in the House.”

explaining the situation to Haddad, Motta said, “We said we want to help the government, we want to help the Ministry of Finance: ‘We help approve its entire agenda, but no one understood its criticisms of congress that has never been lacking since mr. took office.’ We were always correct.But this measure it arrived at a time when there is exhaustion to increase taxes, after so many already adopted by the government.”

Haddad reportedly responded by outlining potential consequences, such as a shutdown of the public machine due to resource depletion.

Motta confirmed that they had given Haddad time to present a solution before congress votes on the legislative decree. “Yes.We said that not to say that we do not want to collaborate with the government, that we will give a deadline for the economic team to study alternatives. He didn’t seem to see exits, but said he would make an effort with the economic team to speak again.Next week Brasilia will be a little emptied because of the BRICS meeting here. then we will decide until the beginning of the other week what to do. Nor do we make a commitment not to appreciate the Legislative Decree project.In 10 days they can present us with an alternative. We don’t want to disturb, but we need a solution. It will be about 10 days of waiting.”

Regarding potential alternatives discussed with David Alcolumbre and Fernando Haddad, Motta stated, “We have to have something structuring and not gambiarras all the time to increase the collection. We have to review tax exemptions, have to discuss revenue linking and vote on administrative reform. This is what the country wants.”

When asked if taxing bets would be a solution, Motta responded, “I think it can be. It has bets. There are fintechs. FEBRABAN brought a series of such measures to us. Fintechs pay fewer taxes than banks, according to Febraban. It’s that business: when you press CSLL And they are called to divide the account there seek other actors to share the part that fits them.”

Motta described the conversation with Haddad as respectful, with both sides presenting their perspectives. He also noted that gleisi Hoffmann, Jaques Wagner, Randolfe Rodrigues, and josé Guimarães all contributed to explaining the situation in congress to the minister, emphasizing the likelihood of the PDL passing both the House and senate if put to a vote.