Hugo Motta, president of Brazil's Chamber of Deputies and member of the Republicanos party from Paraíba, defended the congressional decision to overturn the government decree on the Tax on Financial Operations (IOF), denying accusations of betrayal against the Lula administration. Motta criticized the government for fostering social polarization by framing issues in an 'us versus them' narrative. He stated that he had warned the government about the potential problems associated with the IOF decree prior to the vote. The government plans to challenge the congressional decision at the Supreme Federal Court (STF) to uphold the IOF decrees. Motta warned that if the dispute over the IOF reaches the STF, it could lead to a rupture between Congress and the government. Meanwhile, Motta has scheduled a special session to address fraud in the National Institute of Social Security (INSS), amid ongoing political tensions with the Lula administration. Former São Paulo Governor João Doria praised Motta as a "hero of Brazil" during a private dinner, where Motta described the IOF vote as a "portrait of a very combative parliament." Reports also indicated that Motta avoided a phone call from President Lula on the day of the IOF vote. The Lula government is currently evaluating legal options and held meetings with legal advisors to consider taking the IOF dispute to the Supreme Court.
Governo avalia se leva briga sobre IOF ao Supremo; Lula se reúne com secretário para assuntos jurídicos nesta manhã (1º). #EmPonto ➡ Assista à #GloboNews: https://t.co/bFwcwLpLU9 https://t.co/4yt9B8jIE2
Motta diz que Congresso pode “romper” com governo caso derrubada do IOF chegue ao STF #JornalDaManhã https://t.co/QVoL48D12e
Governo vai entrar no STF para manter decretos do IOF; Deysi e Trindade comentam #JornalDaManhã https://t.co/ChzgKPaiRZ