Brazil's Supreme Court Declares Congressional Omission on Wealth Tax

Overview

• The case arose from a 2019 PSOL lawsuit arguing that Article 153 requires a complementary law to establish a tax on large fortunes.
• A majority of justices recognized the legislative omission, with Flávio Dino, Cármen Lúcia, Cristiano Zanin, Nunes Marques, Dias Toffoli and Alexandre de Moraes in favor and Luiz Fux dissenting.
• The Court did not set a deadline and affirmed that the judiciary cannot create or impose the tax in Congress’s place.
• Justices cited 37 years since the Constitution took effect and some framed a wealth tax as a tool to address Brazil’s regressive system and advance social justice.
• Some votes urged coordinated design to prevent capital flight, and Dino proposed a 24‑month window, but the final decision imposed no timeframe.