Congress' arguments for Moraes to maintain the overturn of the IOF increase

The National Congress filed this Friday 11th a request for Minister Alexandre de Moraes, of the Federal Supreme Court, to maintain the legislative decree that overturned the IOF increase carried out by the government.

According to the Parliament's lawyers, Congress's maneuver did not exceed the jurisdiction of the House of Representatives and the Senate. Furthermore, they argue that the government misrepresented the purpose of the amendment, as it was supposedly intended to increase revenue and bring public finances into the black.

“The factual elements demonstrate a revenue-raising motivation, revealed by official statements and the fiscal context of the measure, distorting the required regulatory purpose,” the document states.

The government decree, according to Congress, violates Article 65 of the National Tax Code, which conditions changes to the IOF tax rate on "compliance with monetary policy objectives." "The lack of an extra-fiscal purpose undermines the legitimacy of the measure and highlights its revenue-raising nature," it states.

The document was sent to Moraes days before the conciliation hearing scheduled at the Supreme Court to discuss the matter. In the same decision that ordered the hearing, the minister suspended the effects of the executive and legislative decrees that addressed the increase and the reversal of the adjustment.

The meeting is scheduled for Tuesday, the 15th, with representatives from the Presidency, the Senate, and the Chamber of Deputies, as well as the Attorney General's Office and the plaintiffs in the three lawsuits challenging the decrees: PSOL, PL, and the AGU itself.