The AGU filed an ADC to defend the constitutionality of the IOF tax hike, the House postponed the vote on the urgent status request for the tax benefits bill, and the Senate approved the MP that expands access to the Social Fund

BRAZIL POLITICS - Report 02 Jul 2025 by Murillo de Aragão and Cristiano Noronha

The Office of the Attorney General (AGU) has filed a Declaratory Action of Constitutionality (ADC 96) with the Supreme Federal Court (STF) to defend the constitutionality of President Lula’s decree increasing the Tax on Financial Transactions (IOF). Justice Alexandre de Moraes is serving as the rapporteur. The Lower House decided to postpone the vote on the urgent status request for the bill that regulates the review of tax benefits (PLP 41/2019). The vote was originally scheduled for yesterday. The Senate has approved the Provisional Measure that expands the possibilities for using resources from the Social Fund, which is financed by oil royalties (MP 1291/25). The text now goes to the President for signature.

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