Overview
- The president will block Article 32 provisions that allowed up to 70% reductions in fines and interest for highly rated taxpayers under Receita’s Sintonia program.
- The veto also covers the use of tax-loss and negative CSLL credits to offset amounts due in occasional late payments by otherwise compliant companies.
- Lula’s decision came after a meeting with the Finance Ministry, the Attorney General’s Office and the Casa Civil, whose legal teams questioned compliance with the 2026 budget guidelines and the Fiscal Responsibility Law.
- Receita Federal and business groups, notably Abrasca, had backed the contested article, while nine congressional fronts tied to the productive sector publicly urged full sanction without vetoes.
- Officials signal that compliance programs can still advance through regulation, and Receita plans alternative incentives even as the broader law targets repeat tax evaders and tightens rules in the fuel sector following major enforcement operations.