AGU says decision on IOF represents a victory for the Constitution

The Attorney General of the Union, Jorge Messias, stated, this Wednesday 16, that the decision of the Minister of the Federal Supreme Court (STF) Alexandre de Moraes that validated the presidential decree on the rates of the Tax on Financial Operations (IOF ) represents a significant victory for the Constitution.

In a press release, Messias said that the separation of powers in the Republic was respected by the Supreme Court.

"The principle of separation of powers was respected, with clearly defined responsibilities and limits. The Supreme Court comprehensively analyzed the central issue, concluding that the presidential decree is constitutional," he commented.

Regarding the portion of the decision addressing the levy of IOF on transactions involving cashed-in risk, which was overturned by the minister, the attorney general acknowledged that the measure is controversial. "We respect the reporting minister's understanding, as this is a new controversy that effectively still raises disagreements," he added.

Earlier this evening, Moraes granted the request for an injunction filed by the Attorney General's Office (AGU) and the Socialist Party (PSOL) and upheld President Luiz Inácio Lula da Silva's decree raising the IOF tax rate. Last month, the decree was suspended after a vote in the National Congress.

The minister's final decision was handed down after the federal government and Congress failed to reach an agreement during a conciliation hearing held yesterday, the 15th, by the Supreme Federal Court.