Brazil Readies Fast-Tracked Bills to Replace Lapsed IOF Package and Close 2026 Fiscal Gap

Overview

• Finance Minister Fernando Haddad said the government will send at least two bills, one to curb spending and limit tax compensations and another focused on taxing fintechs and online betting.
• The Chamber’s Finance and Taxation Committee approved urgency for the betting bill, which lifts the gross-revenue rate on operators from 12% to 24%, sending the text to the plenary without a set date.
• Chamber President Hugo Motta said the government aims to present its replacement proposal by next week, with the House prioritizing spending cuts first and leaving a broader review of tax exemptions for a later stage.
• Officials are weighing constitutional urgency and appending measures to bills already in progress, with government leader José Guimarães citing potential vehicles such as the beverage falsification bill and the Rearp proposal.
• Receita Federal’s Claudemir Malaquias said the revenue impact of the MP’s compensation-rule change cannot yet be measured, while overall recomposition targets roughly R$34.5 billion in 2026, including R$15–20 billion in cuts and about R$3.2 billion from bets and fintechs.