The Chamber of Deputies is expected to vote this Tuesday (16) on the bill that reduces certain tax incentives by 10%, and the Lula government (PT) is working so that the proposal also includes an increase in tax on betting (betting houses), fintechs and JCP (Interest on own capital). The decision should come this Tuesday afternoon, during a meeting with party leaders.
The initiative to increase these taxes was already rejected by the Chamber itself in October in the MP (provisional measure) to increase taxes, but, since then, the increase in taxes for these sectors has resurfaced in several projects, such as the anti-faction project (which will not be voted on this year by the deputies) and in another presented by Senator Renan Calheiros (MDB-AL) and already approved by the Senate.
The government asked the rapporteur of the incentive reduction project, MP Aguinaldo Ribeiro (PP-PB), to include these rate increases in his opinion, in order to contribute to the closing of accounts for 2026. The reduction in subsidies is expected to bring in 19.76 billion reais in 2026. Revenue from the increase in taxes on these sectors is forecast in the budget at 3.99 billion reais.
Without approval of these measures, Congress would have to reduce the spending planned in the budget, including part of the parliamentary amendments, which deputies and senators want to avoid due to the elections.
Increases of three rates would be planned: from 15% to 17.5% of income tax on the distribution of JCPs (mechanism used by large companies to capitalize); 12% to 18% of gross gaming revenue (GRP) from betting; and from 9% to 15% of the CSLL (Social Contribution on Net Profit) for fintechs and payment institutions.
The values, however, are not yet finalized and will depend on an agreement between party leaders and also on a negotiation between the President of the House, Hugo Motta (Republicanos-PB), with the President of the Senate, Davi Alcolumbre (União Brasil-AP), to ensure that the text would be approved by the senators this Wednesday (17) without modifications.
PT House leader Rep. Lindbergh Farias (RJ) said the proposal is essential to close the books for 2026. “There is no way to pass the budget with this hole,” he said. The LOA (Annual Finance Law) should be approved by Congress on Thursday (18), before the legislative recess.
Despite the government’s attempt, some political organizers advised against mixing the tax increase with the reduction of incentives, because it is a complementary bill, which requires a larger quorum for its approval – an absolute majority of deputies, 257 out of 513. The rates of these taxes are currently regulated by ordinary law, which requires only a simple majority of those present.
The opposition is against the increases, and part of the center has also come out at other times in favor of rejection. Furthermore, the plan to reduce tax incentives itself faces resistance. The rural group, for example, opposes the reduction of tax benefits, arguing that it will suffer a double harm, with the reduction of the sector itself and also of inputs.
The reduction affects the advantages granted in terms of taxes such as the PIS/Cofins, the IRPJ (Corporate Income Tax) and the CSLL (Social Contribution on Net Profit), social security contributions, the IPI (Tax on Industrialized Products) and the Import Tax.
On the other hand, benefits aimed at individuals have been spared, such as deductions and exemptions from the IRPF (personal income tax), in addition to Simples Nacional and incentives from the Manaus free zone. The zero PIS/Cofins rate for items in the basic basket is also maintained, as well as the tax immunities provided for by the Constitution.
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