Brazilian Deputy Slams IOF Hike: 'It Will Crush the Poor'

Brazil's IOF Increase: An Inopportune Measure? A recent increase in Brazil's IOF tax has sparked controversy. Federal Deputy Pauderney Avelino (União-AM) argues the measure is ill-timed and will disproportionately affect vulnerable populations and small businesses. "This impact of the IOF increase will affect interest rates, not the banking sector," Avelino stated in an interview with UOL's Mercado Aberto. "It will hit the most humble people, micro and small businesses, those who can't access capital markets, making money more expensive and increasing inflation." Analysts predict a 0.5% increase in interest rates, pushing them to 15.25%. Avelino's concerns highlight the potential for unintended economic consequences of the IOF adjustment, prompting debate on its effectiveness and fairness.