Lindbergh Farias echoed the speeches of Haddad and the rapporteur, Carlos Zarattini, and stated that the text agreement was broken
The PT leader in the Chamber, (RJ), said this Wednesday (8.Oct.2025) that the president’s government (PT) is going to “all or nothing” and will present a highlight to vote on the IOF MP (Provisional Measure) in the original form sent by the Executive.
The economic team had tried to make the measures viable and save part of the revenue that had been estimated with implementation. It went back on raising the bet rate, on taxing the LCI (Real Estate Credit Bill) and the LCA (Agribusiness Credit Bill) and on changing the JCP (Interest on Own Capital). The idea now is to vote on the proposal with all these tax increases.
“We present a highlight to privilege the government’s original text, reestablishing the agreed terms, which were unilaterally revoked. There was an agreement involving leaders of the PT and União Brasil that was undone”these Lindbergh.
If the measure is overturned or expires, the Lula government will stop collecting R$31.4 billion from 2025 to 2026 and will have to deal with a budget hole until the end of its term.
The assessment within the government is already one of defeat. Planalto decided to take the MP to the plenary to be able to adopt the narrative that the opposition is against financing social measures.
The MP is part of the government’s revenue planning, which needs extra money for 2026, to finance programs such as Gás do Povo and Pé-de-Meia.
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 a decree raising the tax. Congress approved a PDL and suspended the measure. Afterwards, the government contacted the STF, which issued the decree, keeping the incidence on withdrawn risk (an operation used by retailers to obtain working capital through the assignment of receivables) suspended.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 Fernando 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 With the exclusion of withdrawn risk, the projections fell to R$11.55 billion in 2025 and R$27.7 billion in 2026.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%.
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;
- fintech – 15% rate.
