The Minister of Finance, Fernando Haddad, demanded this Wednesday (8) that the National Congress fulfills the agreement signed with the federal government regarding the provisional measure (MP) 1,303/2025which creates an alternative to the increase in the Tax on Financial Operations (IOF). The MP, which expires tonight, provides for new sources of revenue, such as taxation of investments, and is considered essential for balancing public accounts in 2026.
“The text is the result of an agreement, with mutual concessions, and it is a sober text that leads the country to close a cycle with social and economic sustainability”, stated Haddad at the headquarters of the Ministry of Finance, in Brasília.
The minister highlighted that “the government just wants the that was agreed be fulfilled.”
According to the head of the Treasury, the government maintained constant dialogue with parliamentarians and responded to several requests during the negotiations. Among the concessions are the maintenance of the Income Tax exemption for agribusiness and real estate sector securities, such as LCIs and LCAs, and the standardization of the rate on financial investments and Interest on Equity (JCP) at 18% — which, in practice, increases the tax from 17.5% to 18% on investments and reduces it from 20% to 18% on JCP.
The revenue forecast fell from R$20 billion to R$17 billion, but the government considers that the text still guarantees enough breathing room to avoid cuts in social programs. “It is a call to responsibility for the richest 1%, without penalizing the worker,” said Haddad.
Political resistance
The vote on the MP faces resistance from parties in the center, who are mobilizing against the text. Haddad attributes the opposition to political motivations and compared the situation to the fiscal disorganization that occurred, according to him, during the 2022 presidential elections.
“They are the same ones who disorganized the country in 2022 for electoral purposes [com desonerações e adiamento de precatórios]. Now they want to reverse the signal: restrict the budget to harm the government, but they will end up harming Brazil”, declared the minister.
Haddad exempted the president of the Chamber, Hugo Motta (Republicanos-PB), recognizing that the differences are no longer of merit. “All technical issues have been agreed. What remains is a political dispute”, he said.
Concessions
Earlier, the MP’s rapporteur, deputy Carlos Zarattini (PT-SP), also recognized the climate of electoral dispute. To approve the text in the joint commission — by just one vote difference — the government had to concede on several points. In addition to reducing the taxation of sports betting and virtual assets, Planalto maintained exemptions for letters of credit, savings and agribusiness securities.
The government also maintained the increase in CSLL from 9% to 15% for fintechs and created regularization regimes for betting and undeclared crypto assets. In relation to bets, the government gave up on raising the tax, but included compensation. Companies that operated in the country before the sector was regulated must pay 30% of the revenue obtained during this period.
Race against time
The MP expires this Wednesday (8) and needs to be voted on by the plenary sessions of the Chamber and Senate so as not to lose its validity. If it expires, the government will have to look for new revenue alternatives to compensate for the reduction in the IOF and maintain compliance with the 2026 fiscal targets, with a target of 0.25% of the Gross Domestic Product (GDP), primary surplus, equivalent to R$34.3 billion for next year.
“Breaching the agreement and fighting against the country to preserve privileges will not lead to a good place”, concluded Haddad.
