Commission approves Tax MP after government backtracks on bets and LCs

The joint committee of Congress that analyzes the Fiscal MP (1,303 of 2025) approved this Tuesday (7.Oct.2025) the text, presented by the president’s government (PT) as an alternative to the increase in the IOF (Tax on Financial Operations). The score was 13 votes in favor and 12 against. Leia a (PDF – 327 kB).

The provisional measure expires on Wednesday (Oct 8). The Chamber is expected to vote on the proposal this Tuesday (Oct 7). The economic team led by the minister made concessions to try to approve the MP and minimize the damage. According to the proposal sent by the Executive, the government expected to raise R$30 billion by 2026. With the changes, the amount should decrease and the Treasury will have to rethink the 2026 Budget – election year.

The rapporteur (PT-SP) agreed to maintain the exemption from IR (Income Tax) on fixed income investments, such as LCA (Agribusiness Credit Bill) and LCI (Real Estate Credit Bill), to break the agro’s opposition to the measure. Previously, it sought to tax them at 7.5%.

Here are other changes:

• bets – tax burden maintained (without the increase proposed by the government), stricter control rules and regularization program;
• tax rates on fintechs – maintained;
• IRRF (Income Tax Withheld at Source) – does not apply to JCP received by FIA (Share Investment Funds), FIP (Participation Investment Funds) and ETF (Market Index Investment Funds);
• FII (Real Estate Investment Funds) and Fiagro (Investment Fund in Agroindustrial Production Chains) with mixed rules – exemption on some income and taxation on others;
• ETF (Market Index Investment Fund) for financial assets – exempt, including for foreign investors outside of tax havens;
• Reverb – Institution of Rerav (Special Regime for Regularization of Virtual Assets).

The president (PT) needs extra money next year to finance the electoral “package of goodies”, including programs such as Gás do Povo and Pé-de-Meia.