LatinNews Daily - 12 June 2025

*Brazil’s government led by President Luiz Inácio Lula da Silva has published two decrees detailing a series of measures aimed at boosting government revenue. The terms of the decrees were negotiated in a meeting on 8 June by Finance Minister Fernando Haddad and prominent lawmakers, such as the heads of the two legislative chambers, lower house president Hugo Motta and senate president Davi Alcolumbre. The government’s new revenue-raising measures include a 5% levy on income tax from several fixed-income securities which had previously been tax-exempt, such as the LCA, CRA, LCI, and CRI credit bonds for the agribusiness and real estate sectors, as well as a tax rise on betting platforms, the proceeds of which will now be taxed at 18%, up from 12%. The new sources of tax revenue allow the government to reduce the tax on financial operations (IOF). On 22 May Haddad announced increases on IOF rates, prompting much backlash from congress and the financial sector. The decrees released yesterday made changes such as decreasing the IOF rate on forfait trade finance operations and rolling back on the planned rise in IOF levies on private pension funds.

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