Overview

• The failed MP 1.303/25 sought to tax investments to offset an IOF rollback and was estimated to raise about R$17 billion.
• PL leader Sóstenes Cavalcante thanked São Paulo Governor Tarcísio de Freitas from the Chamber floor, calling him a key ally against the measure.
• Tarcísio denied orchestrating the defeat and said he is focused on São Paulo, though O Globo reported that at least two party presidents said he called them with arguments against the MP.
• In a CNN Brasil interview, Tarcísio defended opposing the proposal, saying the public cannot bear more taxes and urging fiscal responsibility.
• Lula and PT leaders condemned the outcome as harmful to Brazilians and alleged political sabotage, while opposition and Centrão figures cast the episode as early alignment for the 2026 race.