The deputy (PSOL-SP) filed a bill that rescues part of the , restricting the scope to agricultural titles and proposing a higher taxation of the .
The attempt to tax these securities, which are currently exempt from Income Tax, was . The government had proposed a 5% income tax rate on LCAs and CRAs, in addition to other securities.
Ivan Valente’s project suggests a rate of 15%, maintaining the exemption for securities issued until December 31, 2025. In the justification, he states that the proposal “seeks to correct a tax distortion that benefits large investors and financial institutions to the detriment of fiscal balance and tax justice”.
The parliamentarian argues that the IR exemption on bonds causes a billion-dollar annual loss in revenue, concentration of tax benefits in the highest income brackets and distortions in the credit market.
Valente cites studies by the Ministry of Finance and the Central Bank that indicate that the majority of the tax benefit of these bonds is “appropriated by the investor and the issuing bank.”
“In practice, the exemption works as an indirect subsidy to the financial system, increasing the net gain of investors without a significant impact on reducing interest rates on rural credit”, he states. “While an ordinary worker pays up to 27.5% Income Tax on their salary, income from LCAs and CRAs remains completely exempt, creating a regressive distortion that benefits those who earn the most.”
According to the deputy, the project does not penalize rural producers, “but corrects a distortion that favors banks, high-income investors and large agribusiness conglomerates, at the expense of the public budget.”
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