Brazil’s Haddad Defends Tax Plan on Bets, Banks and Billionaires as ‘Fair and Necessary’

Brazil’s Finance Minister Fernando Haddad has spoken out in defence of the government’s controversial proposal to raise taxes on bets, banks, and billionaires, calling the initiative a fair and essential measure to promote fiscal responsibility and social equity.

Addressing critics of the plan, Haddad dismissed claims that the proposed tax increases are unjust. “The taxation of BBBs, billionaires, banks and bets, is only unfair in the minds of those who are uninformed,” he said, accusing opponents of spreading misinformation about the government’s fiscal agenda.

The proposal, outlined in Provisional Measure (MP) 1,303, was rejected by the Chamber of Deputies last week. The measure had sought to remove income tax exemptions for private investment bonds and debentures, imposing a 5% tax rate on such instruments. It also aimed to raise the betting tax rate from 12% to 18%, a move the government argued would ensure a fairer contribution from profitable sectors.

According to Haddad, the MP formed a central component of the 2026 Budget Bill, which projected an additional BRL 17 billion in revenue stemming from the tax reforms. He cautioned that without this measure, Congress might be forced to consider spending cuts and revisions to parliamentary amendments to keep the nation’s accounts in balance.

Haddad confirmed he plans to meet with President Luiz Inácio Lula da Silva to discuss possible alternatives to replace the rejected measure, expressing confidence that lawmakers will ultimately recognise its fiscal importance.

“Now that the dust has settled, there will be an understanding that this will have effects on other processes, such as difficulty closing the budget, the need for cuts in priority areas, in amendments,” Haddad said, reiterating his stance that taxing the wealthiest sectors and the betting industry is a necessary and equitable approach to ensuring Brazil’s economic stability.

By fLEXI tEAM