Published in the Official Gazette of the Union: Congress overturns IOF tax increase.

247 - The National Congress decided to suspend the decrees of President Luiz Inácio Lula da Silva (PT) that increased the Tax on Financial Operations (IOF), generating a direct impact on the fiscal strategies of the federal government. The measure was formalized this Friday (27) with the publication, in the Official Gazette of the Union, of the decree signed by the President of the Senate, Davi Alcolumbre, reports the g1.

With the overturning, the IOF (Tax on Financial Operations) increases for international credit card purchases, acquisition of foreign currency in cash, and remittances abroad will no longer apply. Adjustments for businesses, discounted risk operations, and investments such as VGBL insurance and credit rights funds will also be eliminated. The expected revenue from these measures was R$ 20 billion by the end of 2025.

The revocation affects three decrees issued by Lula between May and June. The first increased the IOF (tax on financial transactions); the second, published days later, partially reversed it; and the third attempted to adjust controversial points. With the complete overturning, the system reverts to the previous rate.

Haddad reacts and defends going to court - Faced with the loss of revenue, Finance Minister Fernando Haddad (PT) did not rule out a legal response. In an interview with Folha de S. Paulo, he stated that "this decision will still be made by President Lula," signaling that the government may take the case to court.

Haddad justified the increase in IOF (tax on financial transactions) as part of a strategy to achieve fiscal balance by 2025. The defeat forces the economic team to seek alternatives—such as new budget freezes or increases in other taxes—to compensate for the deficit.

Provisional measure still in effect reinforces revenue collection - Despite the defeat in the Legislature regarding the IOF (Tax on Financial Operations), the government maintains a Provisional Measure (MP) that raises taxes in specific sectors. Estimated to generate R$ 10 billion in 2025, the MP has guaranteed validity and focuses efforts on high-profitability areas, such as betting, crypto assets, and exemptions in the financial market. The main measures are:

• Bets: The tax rate will increase from 12% to 18% on net revenue. Haddad explained: "This sector, today, between what it receives from bets and what it pays out in prizes, is making a gross profit of around R$ 40 billion per year." The measure will take effect in 90 days and will not affect the bettor.
• Interest on equity (JCP): Taxation will increase from 15% to 20%, effective from 2026. JCP (Interest on Equity) is an alternative way to distribute profits that is exempt from income tax for the shareholder.
• Incentivized securities (LCI and LCA): They will go from being exempt to being taxed at 5%, also starting in 2026. Haddad countered criticism from the sector, stating that the cost of the exemption is high, at R$ 41 billion per year, and that there will be no impact on prices.
• Financial applications: The income tax rate will be unified at 17,5% starting in 2026. Currently, it varies between 15% and 22,5% depending on the investment period.
• Cryptoassets: Income and net gains will be taxed at 17,5% starting in 2026. The measure aims to target digital transactions for payment or investment purposes.
• Fintechs: Financial technology companies will no longer pay 9% CSLL (Social Contribution on Net Profit) and will now pay a rate of up to 20%, matching the rates of large banks. Credit cooperatives will also be impacted, with an increase from 9% to 15%.
• Tax compensations: The government is restricting compensations deemed "abusive" by companies, with the goal of raising R$ 10 billion by the end of 2025.
• Nestlé money within the constitutional minimum for education: Including the program in the calculation of the constitutional minimum opens up a budget margin of R$ 12 billion, but reduces the funds available for other actions by the Ministry of Education.