An avalanche of disinformation about a new economic measure has been so difficult for Brazil's government to navigate that it backed down completely this week in a rout launched by the opposition.
The political fiasco centered on the instant money transfer system known as PIX, used tens of millions of times a day by Brazilians for everything from paying bills to giving money to beggars on the street.
All of this started when the new government regulations began on January 1 introducing PIX in the institutions where their financial transactions would be tracked in an effort to combat tax evasion.
This is nothing unusual for traditional banks, but a communications crisis quickly ensued that brought the government in, forcing it to revoke the rule entirely.
A flood of disinformation said PIX's business would be taxed, and the opposition – including former right-wing president Jair Bolsonaro – took advantage of the confusion by taking the step as an attack on the poor.
Nikolas Ferreira, 28, a former social media star turned lawmaker for the right-wing Liberal Party, posted a video criticizing the measure that has garnered more than 300 million views.
He admits that “PIX will not be taxed” but “I have no doubt that it could be.”
“Lula's government will monitor your spending,” he said, referring to President Luiz Inacio Lula da Silva. “The workers are the people most affected by the this step, and they will be monitored as if they were major tax evaders.”
– 'Humanity's greatest evil' –
The fake news crisis came as Brazil's government is locked in a standoff with social media giant Meta over weakening controls on censorship on its platforms like Instagram and Facebook.
Last year, the Supreme Court banned Elon Musk's X platform for 40 days for failing to comply with a series of court orders against online disinformation.
A survey by polling institute Quaest published on Friday showed that 87 percent of those surveyed had heard that the government would tax PIX transactions, and 67 percent of them believed it.
The government tried to fight back, with denials from tax authorities and Finance Minister Fernando Haddad, and a video of Lula making a PIX payment to his favorite soccer team.
But the damage was done. The government not only reversed the measure on Thursday, but issued a temporary measure banning PIX fees.
“If it was fake, why did they send it back,” Ferreira wrote on X, while opposition members praised his role in forcing the government to back down.
Disinfection is “humanity's greatest evil” and “can cause great damage”, new Communications Minister Sidonio Palmeira said as he took office on Tuesday.
The hiring of Lula's campaign strategist since his 2022 election victory was seen as an attempt to boost the government's communication about its political victories after a series of setbacks – with a focus on combating fake news.
Highlighting the communications battle, local media reported that a marketing expert in charge of Bolsonaro's 2022 presidential campaign helped strategize a response to the PIX debate, choosing Ferreira for the attack. guide
– 'Other tax' –
Andre Eler, technical director of consultancy Bites, said the government had recognized that “the level of damage caused by this difficult communication would be irreversible.” “
“The government in general doesn't know much about what happens on social media. And it took too long to respond,” he said.
This allowed the opposition to capitalize on the public's fear that “this is a tax-loving government,” Eler said.
Lula's government has been struggling with public debt, and spending concerns have pushed the real currency to record lows against the dollar.
“Since taking office, Lula's government has maintained part of the increase in public spending with a rare desire to collect taxes,” read a column in the newspaper O Globo on Friday.
“In a country with one of the highest tax burdens in the world, fake news about another tax quickly gains credibility. “
Breno Lima Moreira, a researcher attached to the Central Bank, said that while fake content in Brazil was initially mainly focused on politics, economic issues have seen “the biggest growth” in recent years.
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