The Chamber of Deputies approved the request to remove Provisional Measure (MP) 1303/2025 from the voting agenda, which would tax income from financial investments and sports betting and compensate for the repeal of the decree that provided for an increase in the Tax on Financial Operations (IOF).
THE MP needed to be approved by this Wednesday (8) to not lose its effectiveness. With the removal of the agenda, the text expiresu.
There were 251 votes in favor and 193 against the request, presented by the opposition.
Earlier, the Minister of Finance, Fernando Haddad, demanded that the National Congress comply with the agreement signed with the federal government to approve the MP. Haddad said that the government maintained dialogue with parliamentarians and made concessions. However, parties in the center had been positioning themselves against the measure.
The MP’s rapporteur, Carlos Zarattini (PT-SP), also argued that he responded to practically all of the parliamentarians’ requests.
“We worked in these 120 days to guarantee the approval of the MP. We made progress on some points, we met many demands, we created a text that would have all the conditions to be approved in this House and to be sanctioned by the President of the Republic, a consensus text”, he said.
IOF MP
The original version of the MP proposed the taxation of billionaires, banks and bets as a way to increase revenue. The idea was to tax the gross revenue from bets at a rate between 12% and 18%, in addition to taxing financial investments, such as Agricultural Credit Letters (LCA), Real Estate Credit (LCI) and Development Letters (LCD), as well as interest on equity.
The initial forecast was to raise around R$10.5 billion in 2025 and R$21 billion in 2026. With negotiations, the projection fell to R$17 billion.
The resources will go to the Budget as a way of meeting the surplus target. The 2026 Budget proposal has a surplus target of R$34.3 billion.
The leader of the PT in the Chamber of Deputies, Lindbergh Farias, stated that there was a breach of the agreement with the MP’s withdrawal from the voting agenda.
“We consider what is happening here today to be an act of sabotage against Brazil. On the part of the rapporteur, there was all the patience to discuss an agreement on merit, but what was clear to us is that here the desire to impose a political defeat on Brazil, not on President Lula, was clear,” said Lindbergh during a late afternoon press conference in the Chamber’s Green Room.
According to the PT leader, the movement would have been led by the presidents of the PP, Ciro Nogueira, of União Brasil, Antonio Rueda, and the governor of São Paulo, Tarcísio de Freitas, who want to anticipate next year’s electoral debate.
The leader of the Rede-PSOL federation in the Chamber, Talíria Petrone (PSOL-RJ), also accused politicians of trying to overturn the provisional measure to bring forward the electoral debate for president.
“When they think they are attacking President Lula’s government, they are attacking the Brazilian people as a whole. We saw the population in the streets demanding a Congress that turned to the people and we have seen in recent weeks agendas against the Brazilian people, such as the PEC [Proposta de Emenda à Constituição] of Blindagem”, he pondered.
Oppositionist Mendonça Filho (União-PE) stated that the proposal had the MP’s definition of lies.
“In origin it was to replace the IOF increase, which was overturned in this House in the National Congress, and which the government appealed and, through a monocratic decision by a minister of the Federal Supreme Court, was reestablished”, said the deputy, stating that the tax raises R$30 billion per year.
With the MP not approved, the government must make a new block on 2025 expenses, including parliamentary amendments. The estimated loss in revenue is R$35 billion in 2026.
