Overview

• By a 251–193 vote, the Chamber of Deputies removed MP 1.303 from the agenda, ending a plan to raise revenue via higher taxes on bets, fintechs and certain financial instruments.
• The government estimates the lapse leaves a roughly R$46.5 billion gap through 2026, combining lost revenue and required spending controls.
• The Planalto began political reprisals and sharper messaging, with dismissals of appointees including at Caixa and a PT video accusing Congress of having “defeated the people.”
• Online backlash surged after the vote, with “cortem as emendas” topping Brazil’s X trends and social posts blasting Congress over the decision.
• Officials are drafting alternatives that include a retroactive compliance program for betting firms estimated at about R$5 billion, higher CSLL on fintechs, a potential R$10 billion contingency on lawmakers’ amendments, and even IOF adjustments by decree, while economists warn the 2026 fiscal target is at greater risk.