The Chamber of Deputies approved on Wednesday morning (17) the bill which reduces part of the country’s tax benefits by 10% and increases the tax on betting (betting houses), fintechs and JCP (Interest on equity, a mechanism used by large companies to finance themselves). The text goes to the Senate.
There were 310 votes in favor and 85 against.
Rapporteur of the proposal, MP Aguinaldo Ribeiro (PP-PB) excluded from the reduction of tax benefits the exemption from payroll and programs linked to industrial policy for the information technology, communications and semiconductor sectors. The incentives included in the Constitution, as promised by the government, were also not within the scope of the measure.
The report also sets a minimum income to reduce the tax advantage of companies subject to the presumed profit regime.
According to the rapporteur, the project will have an impact next year of R$17.5 billion in revenue recovery, R$2.5 billion in tax increases with the JCP tax change, R$1.6 billion with fintechs and R$850 million with betting. The figures were provided by the Ministry of Finance, he said.
The aim is to increase revenues to avoid a reduction in spending in the 2026 budget, which has sparked protests from the opposition that the Lula (PT) government would have an instrument to cover more spending. The leader of the government in the House, deputy José Guimarães (PT-CE), affirmed that the money was not intended for the government, but for the country.
However, to cover the budget, the text had to be approved before the vote on the LOA (Annual Finance Law), scheduled for Thursday (18), which motivated this morning’s deliberation — supported by the government and central parties and under the obstruction of the PL and Novo.
Congress also benefited from the plan to increase payment for parliamentary amendments. The text allows those recorded as balances to be paid between 2019 and 2023 and which have been canceled to be revalidated and can be settled by December 2026. In addition, it creates a mechanism to allow settlement even in the event of insufficient amounts for the full execution of the proposed objects, due to delay.
The 10% reduction in benefits will apply to those granted on the basis of nine taxes: PIS/Pasep, PIS/Pasep-Importation, Cofins, Cofins-Importation, IRPJ (Corporate Income Tax), CSLL (Social Contribution on Net Profit), Import Tax, IPI (Tax on Industrialized Products) and the employer’s Social Contribution.
The project avoids reductions in the benefits of the Manaus Free Trade Zone, the basic food basket, Minha Casa Minha Vida, ProUni (University for All Program), constitutional immunities and incentives granted for a specific period of which the beneficiary has already fulfilled the onerous condition of enjoying them, all of which is enshrined in the Constitution.
The opinion issued on Tuesday evening (16) excluded two benefits which, by then, would be eliminated: the social security tax relief policy (which is already expected to be phased out by 2028) and programs linked to industrial policy for the information technology sector and the semiconductor sector.
Another change was to increase the number of companies benefiting from the presumed profit scheme which will be exempt from the 10% reduction. The government’s proposal was to exempt income of up to 1.2 million reais. After negotiations with the group of farmers and businesses, the floor was increased to 5 million reais per year, which excludes the Simples’ small businesses from the reduction.
The changes were offset by increases in other taxes. The JCP mechanism, used mainly by banks, industries and the real estate sector, saw taxation increase from 15% to 17.5%.
Regarding betting, the text provides that the rate on gross gaming revenue (RPB), which is currently 12%, will reach 15% in stages (13% in 2026, 14% in 2027 and 15% in 2028). This 3% surplus must be allocated to social security.
The proposal also allows companies that advertise illegal betting to be jointly sued for owed taxes and unpaid prizes. Financial institutions and payment institutions that do not adopt restrictive measures against bookmakers operating without government authorization may also be prosecuted.
In the case of fintechs, CSLL (Contribution to Net Profit) will increase in stages. The rate for fintechs and payment institutions, over-the-counter market administrators, securities and commodities exchanges will increase from 9% to 12% in 2026 and, from 2028, it will increase to 15%.
For credit, financing, investment and capitalization companies, the rate will increase from 15% to 17.5% in 2026 and to 20% in 2028. The 20% levy is currently exclusive to banks.
The text also imposes a series of rules for the granting, extension or extension of tax, financial and credit advantages. The creation of new incentives or the extension of existing ones, for example, can only occur with the simultaneous reduction of other benefits of the same nature and equivalent value.
The concession, extension or extension must be accompanied by an estimate of the number of beneficiaries, the period of validity and transparency mechanisms. Incentives can only last more than 5 years if they are linked to long-term investments, and their extension will be prohibited if performance targets are not met.
On Tuesday evening, the session was interrupted for about an hour so that the rapporteur could submit his opinion. Citing lack of time to study the issue, PL and Novo requested the vote be postponed.
Although the first report was submitted after 10 p.m., the government and central parties defended the approval of the project that evening. There is an agreement for the project to be analyzed by senators this Wednesday (17), on the eve of the vote on the LOA.
The opposition also questioned the tax increase, and PL and Novo voted against the project. “We are increasing the tax of a company that invests in itself with its own capital by 17.5% and only charging 15% tax on betting. This cannot be serious,” said MP Joaquim Passarinho (PL-PA).
Motta said the deadline is tight and reducing tax benefits is something he has always advocated for. The President of the House argued that, although the Constitution provides that tax exemptions are limited to 2% of GDP (Gross Domestic Product), this value today reaches almost 5%.
Rep. Kim Kataguiri (União Brasil-SP) accused representatives of the government base of voting in favor of the project in exchange for paying 5 million reais in parliamentary amendments to the budget. “I want to denounce this shame. No one here is voting for this because of Republicanism. It’s money in the parliamentary base,” he declared.
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