Lula calls on AGU to evaluate legal measures against the overturning of the IOF decree

The Attorney General's Office (AGU) confirmed this Friday (27) that it was called by President Luiz Inácio Lula da Silva (PT) to evaluate legal measures that can be taken to resume the decree that increases the IOF rates, and which was overturned by Congress last Wednesday (25).

The request confirms the legal solution that can be taken by the government , cited by Finance Minister Fernando Haddad , that the legislative decision may have been unconstitutional.

“The Attorney General's Office (AGU), at the request of the President of the Republic, has initiated a technical assessment of the legal measures to be adopted to preserve the validity of Decree No. 12,499 of 2025 (IOF). At this time, the AGU has requested information from the Ministry of Finance to support the studies,” the AGU told Gazeta do Povo .

According to the agency, the AGU will make a decision on some legal measure as soon as the analysis is finalized.

The Legislative Decree Project (PDL) that suspends the presidential decree passed the Chamber of Deputies with 383 votes in favor, including from parties in the allied base, and was considered about an hour later by the Senate – in an unusual procedure – with a symbolic vote. The acts were seen by President Lula as a betrayal on the part of Presidents Hugo Motta (Republicanos-PB) and Davi Alcolumbre (União-AP), since there was an agreement to analyze the proposal later.

Since then, Lula, allied leaders and the government itself have been evaluating measures that can be taken to resume the increase in the IOF to balance the books and comply with the rules of the fiscal framework this year. The repeal of the decree may have caused a loss of revenue of R$12 billion, according to initial estimates.

“In the opinion of government lawyers, who have had many victories in court, [the overturning of the decree] is blatantly unconstitutional,” said Haddad.

The decision is still being evaluated by Lula and could be made between this Friday (27) and the beginning of next week.

Haddad also stated that he will await a statement from the National Treasury Attorney General's Office (PGFN) or the Federal Attorney General's Office (AGU) that certifies that the legislative decree that overturned the IOF increase is unconstitutional.

“I am for the Constitution. And I think that Congress will also defend the Constitution. When the opposite happens, if the Executive usurps a power of the Legislative, Congress will defend itself,” he pointed out.