Haddad Seeks IOF Hike Amidst Brazilian Fiscal Crisis

Brazil's Finance Minister Fernando Haddad met with the presidents of the Chamber and Senate on May 28, 2025, to discuss a critical plan to address the country's fiscal challenges. The plan includes a proposed increase in the IOF tax, alongside R$30 billion in spending cuts and a search for an additional R$20 billion in revenue. Haddad emphasized the potential for severe consequences, including further budget constraints, if the IOF increase isn't approved. "The public machine would be in a delicate situation without the increase in IOF," Haddad warned. Despite the discussions, there's been no firm commitment from Congress to prioritize the legislative decrees aimed at revoking the IOF increase. This situation underscores the ongoing tension between the executive and legislative branches in Brazil's efforts to stabilize the nation's finances. The government hopes to find a solution that balances fiscal responsibility with the need to maintain essential public services.