Brazil's President Lula once again defends betting and fintech taxes, denies hike in overall burden

Speaking at the launch of Brazil’s 2025/2026 Plano Safra agriculture program on Thursday, President Luiz Inácio Lula da Silva defended his administration’s push to widen the tax base, arguing it was not about increasing the overall burden but ensuring a fairer distribution of contributions.

From the stage at the Planalto Palace, Lula addressed the need to reduce the privileges of some to give to others, and sought to calm concerns that tax hikes were underway. “No one wants to take anything away from anyone,” he said.

Last month, Lula da Silva publicly supported the tax adjustments, urging that the government must resist pressure to back down in the face of opposition.

Responding to criticism from sectors that have called recent moves a tax increase, Lula insisted the government’s policies were about adjusting how taxes are collected.

“It’s not a tax increase. If you are honest with your conscience, you will realize that the tax burden of this government today, in percentage terms, is lower than it was in 2011,” he said. “What we are doing is not trying to increase taxes, we are trying to make taxation fairer and more correct.”

In his remarks, Lula sharply criticized what he described as Brazil’s “lobbying industry,” singling out online betting platforms and financial technology firms for special mention. “We wanted to tax these ‘Bets’, fintechs, I don’t know, this thing that doesn’t allow you to watch TV anymore, because there is so much betting advertising that you don’t even know where to bet anymore,” he said.

Lula also took aim at longstanding payroll tax exemptions benefiting 17 economic sectors. “In exchange for what?” he questioned, pointing to what he views as imbalanced advantages granted to specific industries.

He praised Finance Minister Fernando Haddad for his role in navigating these fiscal debates. “Few countries in the world have a Finance Minister with the seriousness that Haddad has. This country has had very few,” Lula said.

The president acknowledged resistance from wealthier Brazilians, attributing it to provisions in a bill that compensates for an expanded exemption from income tax for individuals earning up to R$5,000 (around US$920) a month.