June 25, 2025 – Brazil's lower house of Congress overturned a decree by President Luiz Inácio Lula da Silva that raised the Tax on Financial Transactions (IOF). The measure now heads to the Senate.
This decision represents a setback for the administration, which aimed to boost revenue and reduce spending freezes. The government's economic agenda faces obstacles in Congress, and President Lula's approval ratings are declining.
The tax increase, projected to raise billions, targeted corporate loans and foreign-currency transactions. The government's fiscal challenges have contributed to a decline in investor confidence, with the Brazilian real reaching record lows against the US dollar.