Brazil Judge Backs Part of Lula Tax Decree, Easing Budget Strain

Brazil’s Supreme Court upheld much of President Luiz Inacio Lula da Silva’s decree that increased taxes on financial transactions, providing the embattled leftist a fiscal boost ahead of next year’s election.

The decision, handed down by Supreme Court Justice Alexandre de Moraes late Wednesday, reinstates the bulk of the so-called IOF tax whose increases Congress voted to overturn in June. Moraes struck down just one measure related to the taxing of supply-chain financing operations known as “forfait.”

Alexandre de Moraes

Photographer: Evaristo Sa/AFP/Getty Images

Brazil’s Finance Ministry had initially projected revenue of 12 billion reais ($2.2 billion) this year and 31 billion reais in 2026 ...