SAO PAULO (Reuters) -An attempt by Brazil’s Supreme Court to broker a deal between President Luiz Inacio Lula da Silva’s government and Congress over a controversial tax increase ended in a stalemate on Tuesday, with both sides opting to let the court settle the dispute. The hearing focused on the government’s recent decision to raise […]
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Brazil’s government, Congress fail to reach agreement on IOF tax
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SAO PAULO (Reuters) -An attempt by Brazil’s Supreme Court to broker a deal between President Luiz Inacio Lula da Silva’s government and Congress over a controversial tax increase ended in a stalemate on Tuesday, with both sides opting to let the court settle the dispute.
The hearing focused on the government’s recent decision to raise Brazil’s Tax on Financial Operations (IOF) on some transactions in an effort to boost state revenues and Congress’ subsequent move to block the tax hike.
Representatives from the Chamber of Deputies, the Senate and the executive branch agreed that a judicial ruling would be the “best way to resolve this conflict,” according to a document released by the Supreme Court’s press office.
Supreme Court Justice Alexandre de Moraes earlier this month temporarily suspended both the government’s decree raising the IOF tax and Congress’ attempt to overturn the measure, leaving the future of the tax uncertain until the court rules.
(Reporting by Isabel Teles; Editing by Brendan O’Boyle)