Overview

• The Chamber of Deputies overturned MP 1.303/2025, the government's substitute for raising the IOF on financial transactions.
• Finance Minister Fernando Haddad said "the lobby of the privileged prevailed" and described the proposal as aiming to charge billionaires, banks and betting companies.
• Haddad estimated the measure would add R$10.55 billion in 2025 and R$20.87 billion in 2026 to the budget, with R$14.97 billion in expenditure cuts over two years.
• The MP would have raised the CSLL on fintechs from 9% to 15%, set 20% for large fintechs and capitalization firms, and ended the 9% bracket for financial institutions.
• President Luiz Inácio Lula da Silva called for a "peaceful and democratic revolution" against privileges and said he will convene the government next week to craft new proposals on fintech taxation.