Overview

• Brazil’s Chamber of Deputies withdrew the provisional measure from the agenda, causing it to expire and marking a defeat for the government.
• Lula said fintechs will pay the “due tax” to offset the MP’s failure and plans to convene officials next week to decide the approach.
• The lapsed proposal would have raised the CSLL on fintechs from 9% to 15–20%, moving closer to the 20% rate paid by traditional banks.
• Febraban stated it did not work against the measure and said its concern was limited to the treatment of LCA and LCI instruments.
• In a public note, Febraban alleged large fintechs and online betting firms mobilized to defeat the text, after the rapporteur scrapped a planned betting-tax hike to build support.