Brazil: Senator Criticizes Overturning of IOF Decree and Demands Tax Justice

Senator defends taxing sectors that contribute little to the tax system

Brazil.-  July 4, 2025 www.zonadeazar.com  During a speech in the Plenary on Wednesday (2), Senator Humberto Costa (PT-PE) criticized Congress for overturning the presidential decree that raised the Financial Operations Tax (IOF) rate, arguing it was part of the government’s measures to balance public accounts.

“Taxing banks, betting, and the wealthy is not injustice”

Humberto explained the decree sought to tax sectors historically exempt, including a 5% tax on mortgage and real estate credit notes, aligning rates for crypto assets, raising fintech CSLL from 15% to 20%, and increasing betting taxation from 12% to 18%, allocating funds to social security.

“Taxing million-dollar profits from financial investments, taxing banks that pay very little, taxing betting companies that profit billions off others’ misfortune is not injustice, except in the minds of those who privilege elites at the expense of the poor,” he stated.

“Social programs are not to blame for the fiscal deficit”

The senator rejected the opposition’s narrative blaming social programs for the fiscal deficit, noting that it ignores tax exemptions for large companies, high judicial salaries, and congressional earmarks.

“It is immoral to talk about cutting social programs when, in just two years, they achieved the greatest reduction in inequality in our history and saved 85% of people from hunger, while banks and companies continue to profit nearly BRL 90 billion in a single quarter,” he concluded.

Source: Agência Senado (Authorized reproduction with citation of Agência Senado)

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