Alternative to the tax increase must be approved by 11:59 pm or it will expire
The Chamber and the Senate must vote this Wednesday (October 8, 2025) on the IOF MP (). The text was presented by the president’s government (PT) as an alternative to increasing the IOF (Financial Operations Tax).
The proposal must be approved in Congress by 11:59 pm this Wednesday (Oct 8) or it will lose validity. In this case, the government loses part of the expected revenue, complicating next year’s fiscal planning.
The text was published on Tuesday (Oct 7) by a special committee of Congress. The score was 13 votes in favor and 12 against. Leia a (PDF – 327 kB).
Initially, the Chamber would vote on the proposal in plenary on Tuesday (Oct 7), but with the fear of defeat, the government arranged for the vote to be postponed until this Wednesday (Oct 8).
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.
MP DO IOF
MP 1,303 of 2025 was published in June to compensate for the loss that the government had in a clash with Congress over the increase in the IOF (Financial Operations Tax).
At the time, Planalto had issued the decree and raised the tax. Congress approved a PDL and suspended the measure. Afterwards, the government contacted the STF, which took the measure, keeping the incidence on withdrawn risk (an operation used by retailers to obtain working capital through the assignment of receivables) suspended.
As this part of the IOF was out of reach, Lula and Haddad sent the MP to Congress to compensate for the loss of revenue. Provisional measures have the force of law, but must be approved within 120 days or they lose their validity.
In the original proposal, the government estimated R$12 billion in 2025 and R$31.2 billion in 2026. With the exclusion of withdrawn risk, the projections fell to R$11.55 billion in 2025 and R$27.7 billion in 2026.
These values, however, will change. The exact value is not yet clear, but there will be a loss of billions of reais in 2026 (less revenue and fewer containment measures). The text approved by the special commission that analyzed the text on October 7, 2025 came out dehydrated.
HOW IT WAS X HOW IT WAS
What were the main points of the MP:
- LCI is LCA – increase IR (Income Tax) on fixed income investments, such as LCA (Agribusiness Credit Bill) and LCI (Real Estate Credit Bill) to 5%;
- bets – increase in the tax rate on the gross revenue of betting companies from 12% to 18%;
- JCP (Interest on Equity) – increase from 15% to 20%;
- fintechs – was 9%. Government wanted to increase it to 15% or 20%.
How the text approved by the special committee turned out:
- LCI is LCA – exempt;
- bets – tax burden maintained (without the increase proposed by the government);
- JCP (Interest on Equity) – rate of 18%. The operation is used by large companies to remunerate shareholders and pay less taxes;
- fintechs – rates of 9% maintained.
