The proposal was introduced by the chair of the CAE, Senator Renan Calheiros (MDB-AL), as a complement to bill 1,087/2025, which exempts individuals earning up to R$ 5,000 (US$943) per month from Income Tax and raises taxation on high-income brackets.
In practice, it reinstates parts of the Provisional Measure that proposed tax increases to reinforce government revenue and ensure compliance with fiscal targets for 2026.
Senator Eduardo Braga attempted, during the period in which the bill was under review, to negotiate agreements to secure its approval in the Economic Affairs Committee and, especially, in the Chamber of Deputies, where resistance to raising taxes on ‘Bets’ is higher.
He met with the Minister of Finance, Fernando Haddad, and the President of the Senate, Davi Alcolumbre. Eduardo Braga even stated that the bill might not be voted on if the government “does not do its homework.” He defines this “homework” as effectively combating illegal ‘Bets’.
In an interview with O Globo, he said that “there is a portion of ‘Bets’ that doesn’t pay 12%, doesn’t pay anything, because they operate illegally. So it makes no sense to raise the rate from 12% to 24% for those who are legal if the door to illegality isn’t closed. Otherwise, illegality will only increase.”
“The guy who is legal will say: ‘I’m a fool. I pay taxes, I operate legally, and now I will pay double, while my neighbor doesn’t pay a single cent and nothing happens to him.’ The government’s first task is to close the door on what is happening with illegal fintechs and illegal payment companies, which are the entry and exit channels for money from illegal ‘Bets’, organized crime, and money laundering,” he said.
The rapporteur read his opinion on November 4, but Renan granted a collective request for further review. The CAE’s decision is final — meaning that if approved, the bill goes directly to the Chamber of Deputies unless a request is filed for a floor vote in the full Senate.
Source: GMB
