President Luiz Inácio Lula da Silva spoke this Tuesday with the President of the Chamber, Hugo Motta (Republicanos-PB), to try to find an agreement on projects of economic interest for the government. The dialogue, which took place by telephone, takes place after weeks of friction between the Palácio do Planalto and the Legislative Chamber.
- Negotiations: MEPs evaluate phased reductions in tax incentives; the project is in the interest of the government to close the accounts in 2026
- Home straight: Lula asks Macron and Meloni to “take their responsibilities” and support the Mercosur-EU agreement
According to reports, Lula and Motta are trying to align votes on a plan that includes a 10% reduction in tax exemptions. The government’s economic team considers this initiative key to achieving the budget target, as it has the potential to open up at least 20 billion reais of fiscal space. The government base also wants to include in the text the increase in taxation of betting, the taxation of capital interests and fintechs.
Planalto wants to vote on the initiative in the House and Senate before voting on the budget, the analysis of which is scheduled for Thursday.
The Minister of Finance, Fernando Haddad, participated in hand-to-hand negotiations with parliamentarians. He was in the Chamber today for a meeting with Motta and deputy Aguinaldo Ribeiro (PP-PB), rapporteur of the exemption revision project. Haddad also met Lula and Motta on Sunday.
In addition to the proposed modification of exemptions, the government also wants to complete the vote on the tax reform regulations, which governs the operation of the IBS Management Committee (which will be state and municipal tax).
Government leaders said the finance minister had intensified dialogue with House leaders and with Motta to ensure voting on issues considered priorities this year. Friday, after an operation by the Federal Police targeting a former advisor to Arthur Lira (PP-AL) who was currently working in a room of the President of the House, the leaders of the center declared that the trend was that no project would be examined this week and therefore before the parliamentary recess (which officially begins on the 23rd).
According to reports, Lula and Motta also discussed the issue of security. The House is expected to vote next year on the proposed security amendment (PEC) and the anti-faction bill. The two initiatives are the subject of a standoff between the base and the opposition.
About The Author
