Overview

• Lawmakers voted to remove MP 1303 from the agenda by 251 to 193, causing the time-limited measure to lapse without a merits vote.
• Press estimates of the budget hit vary, with reports citing roughly R$31.4 billion to as much as R$46.5 billion in lost revenue and foregone adjustments.
• Drafted as an alternative to raising the IOF, the MP sought new taxation rules on financial investments and other segments, though a committee diluted key increases before the floor fight.
• PL deputy Nikolas Ferreira said he mistakenly voted against the removal while participating remotely and caring for his newborn, drawing criticism from right-wing allies; he and Antonio Carlos Rodrigues were the only PL votes in that direction.
• The outcome marks a clear defeat for the Lula administration in the Chamber, with opposition celebrating as the government now weighs replacement measures to cover the shortfall.