Overview

• PT leader Lindbergh Farias said the fiscal impact could be reduced roughly by half, with the government seeking to preserve R$15–R$17 billion in revenue.
• Rapporteur Carlos Zarattini moved to restore exemptions for LCI, LCA and LCD after resistance from ruralist and other congressional blocs.
• CRI, CRA and incentivized debentures would remain exempt, undoing the original plan to tax currently income tax–free instruments at 5% later raised to 7.5%.
• The original proposal forecast R$10.5 billion in 2025 and R$20.9 billion in 2026, and a narrower text could weaken efforts to meet the 2026 fiscal goal.
• The package also features a higher 18% levy on sports betting, taxation of crypto assets, a uniform 17.5% income tax on financial investments, higher CSLL for financial firms, a 10% cut in tax expenditures and tighter rules for credit compensation.