Brazil's top court backs most of Lula's tax hike decree after stalemate with Congress


  • World
  • Thursday, 17 Jul 2025

FILE PHOTO: A general view of the plenary chamber of deputies during a session at the National Congress in Brasilia, Brazil December 18, 2024. REUTERS/Adriano Machado/File Photo

BRASILIA (Reuters) -Brazil's highest court on Wednesday upheld most of a controversial presidential decree raising the country's financial operations tax (IOF), handing a revenue-boosting win to President Luiz Inacio Lula da Silva's government.

Judge Alexandre de Moraes ruled that only the proposed tax hike on forfait, advance payments made to suppliers that were previously treated by the government as credit operations, would be cut back.

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