Increase in electronics tax and declining polls cause turmoil in the Planalto
President Lula's administration is facing internal conflicts and declining approval ratings as it grapples with a new tax on electronics and rising pressure from political opponents.
The Brazilian government under President Lula is currently experiencing a tumultuous phase as it navigates declining approval ratings and new challenges in the political landscape. A recent survey by Quaest indicates that 49% of Brazilians disapprove of Lula's government, while 45% approve, showing a slight decrease in the approval rate from 47% in January to 45% in February. These stagnant numbers reflect a growing pressure on the government's cohesion, raising concerns about its future stability amidst political opposition, particularly from FlΓ‘vio Bolsonaro.
One of the government's significant controversies stems from an increase in the import tax on electronics, a decision made by the Ministry of Development, Industry, Commerce, and Services (MDIC) in collaboration with the Finance Ministry. This change, which has sparked public debate, was reported last week, adding to the existing challenges that the Lula administration faces in maintaining support amid a troubling and slow economic recovery. The external political pressures and the rising discontent among citizens highlight the vulnerabilities in Lula's leadership.
Additionally, the ongoing struggle with public opinion and policy effectiveness underscores potential fractures within the ruling coalition. The internal disagreements reveal a disconnect between various factions within the government, raising questions about how Lula can successfully lead a divided coalition while facing growing dissent among the populace. The evolving situation indicates that the administration must urgently address public concerns and navigate its policy directions to regain favor and stabilize its governance.