Haddad Says LDO Is on Track as Senate Set to Weigh Higher Betting and Bank Taxes Next Week

Overview

• After discussions with the audit court and lawmakers, Haddad said the LDO process is well advanced and reflects Congress’s adjustment allowing contingency by the fiscal target’s floor.
• The TCU had required contingency by the target’s center but suspended that order after an executive appeal, with technical talks continuing.
• The Finance Ministry will deliver data requested by rapporteur Eduardo Braga on the betting-tax bill by Thursday, Nov. 13, and Haddad expects Senate consideration the following week.
• The proposal would double the tax on betting from 12% to 24% and lift the CSLL to 20% for banks and 15% for fintechs, exceeding the ministry’s initial design.
• Congress approved an income-tax exemption for wages up to R$5,000, and Haddad expects President Lula to sanction the measure by Wednesday, with congressional leaders also suggesting linear cuts to tax expenditures to help close the budget.