Haddad Proposes New Tax Measures to Balance Brazil's 2025 Budget

Brazil's Finance Minister Fernando Haddad announced new measures on June 10th to increase government revenue and balance the 2025 budget. These proposals, presented to President Lula, include taxing previously exempt bonds (LCIs and LCAs), modifying the CSLL for financial institutions, and increasing taxes on sports betting companies. "We are working to reduce tax breaks for some sectors," Haddad stated, acknowledging criticism that the plan lacks structural reforms such as spending cuts. Economist Marcos Lisboa expressed concern that the lack of spending cuts could jeopardize budget adjustments. The government's approach is a delicate balancing act, seeking to increase revenue without significantly impacting the majority of the population. The provisional measure is expected to be published shortly.