PSOL goes to the Supreme Court to overturn Congress' decision on IOF

The PSOL bench in the Chamber anticipated the Lula government (PT) and took action in the Supreme Federal Court, this Friday 27th, against the decision of the National Congress that overturned the new rules of the Tax on Financial Transactions, the IOF.

The judicialization of the issue was defended with more emphasis by a wing of the Planalto Palace , but it has not yet advanced. Earlier, the Attorney General of the Union, Jorge Messias, reported that he had initiated a legal consultation to verify whether the legislative decree usurped powers of the Executive.

Congress suspended the presidential measures that dealt with the IOF last Wednesday 25th. The Ministry of Finance estimates that the decision will result in the loss of 10 billion reais to public coffers , an amount considered essential to balance the Budget and achieve the fiscal target.

In the lawsuit, the PSOL claims that the Parliament violated the institutional separation of powers and that, by overturning the decrees, “it compromises the coherence of public policies and tax predictability.” The party also says that the congressmen did not present any technical grounds that would characterize the “exorbitant regulatory power” of the President of the Republic.

The Constitution establishes that normative acts may be suspended when they exceed the regulatory power of the president or the limits of the legislative delegation conferred upon him.

According to the PSOL, this did not happen, since it is the exclusive responsibility of the Union to establish taxes on “credit, exchange and insurance operations, or those related to securities or assets”. The party also argued that the overturning of Lula's decrees creates a dangerous institutional precedent .

The lawsuit requests a precautionary measure to immediately reinstate the government decree and requests that the case be referred, as a precaution, to Minister Alexandre de Moraes. The judge is the rapporteur of another lawsuit, filed by Jair Bolsonaro's Bill , which questions the new IOF rates proposed by the Planalto Palace.