Brazil's IOF Tax Hike: Haddad Faces Congressional Showdown

Brazil's IOF Tax Increase Faces Congressional Scrutiny BRASILIA - A potential increase in Brazil's IOF tax is facing significant opposition as Minister Fernando Haddad prepares to meet with key congressional leaders on Sunday. The meeting, scheduled for 6 PM, aims to address concerns over the government's plan to raise the tax. The move is intended to bolster public finances following a shortfall in projected revenue. However, the productive sector is actively lobbying against the increase, raising the possibility that the measure could be rejected by Congress. "Depending on the outcome of this meeting, we might see a legislative project to overturn the government decree," stated Hugo Motta, President of the Chamber of Deputies, in a statement on Saturday. The government's economic team maintains that the IOF increase is crucial for maintaining fiscal targets and ensuring sustainable development. The meeting will involve key figures, including Senate President Davi Alcolumbre and Chamber of Deputies leader Jose Guimarães. The presence of Gleisi Hoffmann, Minister of Institutional Relations, further underscores the government's commitment to resolving the issue. The debate highlights the tension between the government's need for fiscal stability and the concerns of the business community regarding the potential impact of higher taxes.