President Luiz Inácio Lula da Silva commented this Wednesday (8) on the resistance of the opposition to the vote on Provisional Measure 1303/25, which establishes new investment taxation rules to compensate for the repeal of the decree that provided for an increase in the Tax on Financial Operations (IOF). 
The text, which advanced by a difference of just one vote in the joint committee that analyzed the matter, it is now on the agenda of the plenary of the Chamber of Deputies and It also needs to be voted on and approved by the Senate, tonight, so as not to lose its validity, which expires exactly this Wednesday.
“This measure is very important, because it takes a step forward in making the rich pay [imposto]. So, if a worker receives his salary at the end of the month and he pays 27% of income tax, you journalists pay 27% of income tax, it is not normal that bankers do not want to pay even 18%, they want to pay less than others. It’s an absurd thing to know that those who earn more money are more stingy when it comes to paying their bills to the people than poor people. But I hope that Congress will demonstrate its maturity”, said Lula in an interview with journalists after an event at Palácio do Planalto.
Agreement in check
Considered essential for fiscal balance in 2026, the MP provides for the taxation of investment funds and specific rules for the taxation of virtual assets, stock exchange operations, asset loans and foreign investors. Originally, the expectation was that the text would increase government revenue by R$20.8 billion and reduce other expenses by more than R$10 billion.
However, to advance in the special committee, the rapporteur of the measure, federal deputy Carlos Zarattini (PT-SP) reached an agreement with different benches to exclude the taxation of bets and applications in Agribusiness Letters of Credit (LCA), Real Estate Credit Letters and Development Credit Letters (LCD). The original version of the MP provided for the taxation of gross revenue from bets regularized with a rate between 12% and 18%. LCI, LCA and LCD applications would have a rate of 5%.
In the case of real estate investment funds (FII) and investment funds in agro-industrial production chains (Fiagro), the rapporteur also revised sections of the proposal to bring the rules closer to the current model. For example, the exemption on capital gains and income related to real estate was maintained, while financial investments continue to be subject to taxation.
The government’s proposal to increase the Social Contribution on Net Profit (CSLL) for so-called Fintechs was maintained. The tax increase equates financial startups with banks. As a result, companies in the sector that currently pay a tax rate of 9% will move to the 15% bracket.
During the vote, the rapporteur also welcomed a suggestion from senator Eduardo Braga (MDB-AM) to set the Income Tax rate at 18% on both financial investments and Interest on Equity (JCP). Initially, the government proposed to unify the rate on financial investments at 17.5%, replacing the current progressive model, which varies from 15% to 22.5%. For JCP, the original proposal provided for a rate of 20%.
‘Poverty of spirit’
For Lula, the decision to leave the vote on the MP until the last day was a choice made by Congress. For him, it makes no sense to associate resistance to voting on the text with the 2026 electoral dispute.
“Who sets the voting deadline is not the President of the Republic, it is the National Congress. So, you see, they are voting within the deadline they decided to vote. If someone wants to mix this with an election, I can honestly only say that it is an extraordinary poverty of spirit. Anyone can say that the proposal is theirs. Any deputy can boast that he was the one who voted in favor”, he commented.
Responsible for the government’s political articulation, minister Gleisi Hoffmann, from the Secretariat of Institutional Relations (SRI), said that the Chamber has a responsibility towards Brazil and that the government is talking to the deputies. For the minister, however, if the MP loses its validity, the burden could fall on parliamentarians who prevent the vote.
“So, let’s wait for what will happen today so that we can approve it and really be able to allocate this resource to the 2026 budget and support the social programs that we are developing with President Lula. Now, if it is not approved, this will be a burden on those who are making the movement against Brazil. It is clear who is defending the people and who is defending the top floor. Because there we have the taxation of Brazil’s financial sector, of those who make a lot of money, yet the rates are lows”, argued the minister.
“The average tax rates for these sectors have been 18% in the proposal that the government made, including in the attempt to reach an agreement. When you have workers, the Brazilian people who pay 27.5% in income tax, it is not fair. It is not fair for the country to have taxation of this type in the majority of the people and sectors that make a lot of profit, earn a lot of money, wanting to pay little”, insisted Gleisi.
Impact on amendments
The government leader in Congress, senator Randolfe Rodrigues (PT-AP), said that up to R$10 billion in parliamentary amendments could be contingent if the MP that replaces the IOF increase is not approved. This is because the government will no longer count on the expected revenue and will have to suspend resources from other sources.
“I imagine that the contingency, if there is no MP, will come from R$7 billion to R$10 billion, just from amendments,” he told journalists at Planalto.
Randolfe stated that the mobilization against the MP in the Chamber is a fear that Lula could be re-elected in 2026. Therefore, these sectors decided to “sabotage” the public accounts.
