Haddad to Re-Present IOF Tax Increase to Brazilian Congress

Brazil's Finance Minister, Fernando Haddad, announced on June 3, 2025, that the government will re-present to the leaders of the Congress the measure that increased the IOF tax. This decision comes after the tax increase caused negative reactions among the leaders of the Congress. According to Haddad, the tax increase will remain, but a meeting will be held with the leaders until Sunday, June 8, to reach a consensus. "We are taking all this care because we depend on the votes of the National Congress. The Congress needs to be convinced that this is the most consistent path from the macroeconomic policy point of view," Haddad stated. The statement comes after the negative repercussions of the decree that increased the IOF tax on some credit and exchange transactions, as part of the government's effort to strengthen tax collection and meet fiscal targets. The government's commitment to a transparent process and collaboration with Congress shows a commitment to responsible governance and economic stability.