Historic Congressional Rebuff Signals Weakening Grip of Lula’s Government

In a striking blow to President Luiz Inácio Lula da Silva, Brazil’s Congress nullified a presidential decree to increase financial transaction taxes, marking the first such rejection in over 30 years. This decisive action by both the lower house and the Senate lays bare the waning influence of Lula’s left-of-center government as it faces mounting resistance from lawmakers.The defeated decree targeted tax hikes on transactions including foreign exchange and credit card payments—measures that had been touted by the administration as necessary for fiscal balance. However, with an overwhelming vote of 383 against versus only 98 supporting in the lower chamber,...