The decree, issued on June 11, softened a previous increase in IOF tax rates that had occurred in May. The decree, which is the subject of the bill presented by opposition leader Deputy Zucco (PL-RS), reduced the fixed IOF rate from 0.95% to 0.38%.
The decree also establishes the taxation of operations in which banks advance the payment of invoices later charged to their clients, known as "assigned risk" operations. Additionally, it imposes IOF tax on VGBL-type private pension plans for amounts exceeding R$ 300,000 (US$54,300).
With the urgency regime in place, the bill may be voted on directly in the House Plenary, bypassing the permanent committees.
The justification for the bill that suspends the government’s decree is that both Congress and society oppose tax increases, according to Deputy Marcel van Hattem (Novo-RS).
“This is the night when the people free themselves from yet another tax imposed by the Lula government. The urgency of the legislative decree bill that suspends an increase that, besides being abusive, is also illegal and unconstitutional will be approved here, and I am convinced by a large margin.”
On the same day the decree was published, the government issued Provisional Measure 1303/25, which establishes income tax on newly acquired financial instruments that were previously tax-exempt, such as the Agricultural Credit Bill (LCA), the Real Estate Credit Bill (LCI), among others. The rate is set at 5%. Other investments, such as cryptocurrencies, were given a fixed rate of 17.5%.
The provisional measure also increases the tax burden on sports betting. The tax rate on the betting operators’ revenue will rise from 12% to 18%.
The leader of the federation formed by PT, PCdoB, and PV, Deputy Lindbergh Farias (PT-RJ), spoke against the suspension of the IOF decree and announced that the government will negotiate party support for the Provisional Measure, which is already in effect.
Deputy Jandira Feghali (PCdoB-RJ) criticized the opposition's initiative against the IOF levy on certain financial transactions. She argued that this taxation targets the wealthy and that the alternative would be to cut social benefits.
“What we are discussing here is a decree that goes after those who have, after those who make money off money. This is not a problem for the vast majority of our people. This concerns those who have resources to carry out financial operations in this country. Just like the provisional measure targets bets and points to a set of exemptions that can no longer exist in Brazil, so that we don’t cut into social security benefits, BPC, because those are resources we cannot reduce or unlink from the minimum wage.”
There is still no scheduled date for the vote on Bill 314/25, which seeks to suspend Decree 12.499/25 regarding the Financial Operations Tax (IOF) rates.
Source: Câmara dos Deputados
