Centrist parties ask the Supreme Court to maintain suspension of decree that increases IOF

Eight Center and Right-wing parties filed this Thursday, the 3rd, a Declaratory Action of Constitutionality at the Federal Supreme Court (STF) asking the Court not to reverse the decision of the Chamber of Deputies that prevented the increase in the Tax on Financial Transactions (IOF).

The acronyms PSDB, Solidariedade, Progressistas, União Brasil, PRD, Republicanos, Podemos and Avante are responsible for the action. The objective would be to “avoid conflicting decisions in the courts on the subject, ensuring stability for the economy and for those who depend on credit in their daily lives,” they said in a statement.

Crucial for the government to be able to balance its accounts, the increase in the IOF was rejected by the Chamber of Deputies on June 25. The case intensified the power struggle between the Planalto and Congress and, on July 1, the government filed a lawsuit with the Supreme Court to reverse the Legislative's decision and keep the decree that increases the tax in force.

President Luiz Inácio Lula da Silva (PT) defended the judicialization of the case and stated that “if I do not appeal to the Judiciary, I will no longer govern the country.” The PT member received support from allies such as the Minister of Finance, Fernando Haddad, and from PSOL deputies.

The Chamber's decision to overturn the IOF increase has also been used by government officials to worsen the “us versus them” climate and create opposition between the Executive and Legislative branches.

In a video published on his Instagram profile, the President of the Chamber, Hugo Motta (Republicanos-PB), criticized the government's strategy of accusing Congress of betraying the interests of the people: “whoever feeds the us against them ends up governing against everyone”, he stated.

Senate President Davi Alcolumbre (União-AP) also responded and said he will file a legislative proposal to restrict who can appeal to the Supreme Court to challenge a law voted on in the National Congress. The proposal is a response to another attempt to overturn the IOF increase, this time led by the PSOL through a lawsuit in the Supreme Court.