In video, PT says that Congress ‘sabotaged the country’ by overthrowing MP who would tax bets

The Workers’ Party (PT) published a video on social media criticizing the National Congress for overturning the Provisional Measure (MP) issued by the Lula government (PT) as an alternative to the increase in the Tax on Financial Operations (IOF). In the publication, the party says that Congress “defeated the people” and “sabotaged the country with the aim of attacking Lula and reducing his strength by 2026”.

— Brazil does not sleep in a splendid place, it was the strength of the people that made the National Congress approve the historic Income Tax exemption for those earning up to R$5,000. But now the National Congress has defeated the people, they have defeated President Lula’s project, they have sabotaged the country, thinking it is possible to change the course of the government that provides tax justice to millions of Brazilians. They defeated the project that charges more taxes from billionaires, banks and bets — says the video.

Last Wednesday (8), the Chamber of Deputies decided to let MP 1,303/2025 expire, which was published as an alternative to the increase in the IOF, to tax investment securities and retroactive charges from betting companies.

Also read: Decline of MP 1303: IOF, dividend and oil auction are options worth R$ 20 billion

By 251 votes to 193, the majority of parliamentarians voted for it not to be analyzed by the House plenary, making the MP no longer valid. The government states that the negative impact on the budget will be R$46.5 billion until next year — R$31.6 billion in revenue frustration and R$14.9 billion in cost containment measures.

In the video, Lula’s party reinforces its defense of the taxation of “billionaires, bets and banks” and the focus on the term “social justice”, as it has done in advertisements on television and on the networks in recent months, citing the changes in IR as one of the examples.

— It’s serious and people are paying attention. They sabotaged the country, with the aim of attacking Lula and reducing his strength by 2026, they once again betrayed the interest of the Brazilian people. The National Congress defeated the people, but if they want to touch the scales of tax justice, the people will know how to give change on the scales of democracy. BBB taxation, banks, billionaires and bets — adds the piece.

Also read: Lula says it is “a matter of days” for the rich to “pay the taxes they deserve”

The overthrow of the MP was one of the main defeats of the Lula government in Congress. Originally, the text increased taxation on bets, fintechs and some financial assets, such as Real Estate Credit Letters (LCI) and Agricultural Credit (LCA).

In search of an agreement, the MP’s rapporteur, deputy Carlos Zarattini (PT-SP), retreated from the taxation of bets and exempt titles, such as LCI and LCA, but maintained the tax increase for fintechs and a retroactive charge on betting houses — the so-called bets — that operated in the country before the regulation of the sector. Even so, the government was unable to approve the measure.

Since the defeat in the Legislature, PT members, allies and pages linked to the left have been betting on criticizing Congress as the “enemy of the people” on social media. According to an analysis carried out by consultancy Bites at the request of GLOBO, profiles linked to the left dominated the debate on the topic on the networks, with 552.4 thousand mentions by government supporters since the decision by the Chamber of Deputies.

Read more: See how each deputy voted to overturn the alternative MP to the IOF

This amount represents 74% of the total posts that occurred in the last three days, when the discussion heated up and generated 764.5 thousand posts. Opposition messages, in turn, celebrating the overthrow of the agenda, appeared in just 13.2% of the posts.

The topic also led to direct clashes between government representatives and the governor of São Paulo, Tarcísio de Freitas (Republicans), who according to interlocutors worked to reject Lula’s MP.

The Minister of Finance, Fernando Haddad (PT), stated that “the state governor (of São Paulo) acted to the detriment of national interests to protect Faria Lima”. In response, Tarcísio said, in a video published on his social media profiles, that Haddad should “be ashamed” and that the government should “cut spending and get off the stage”.

Also read: Rapporteur accuses Tarcísio of articulating against MP 1303: “Pressure instead of governing SP”

— Playing one against the other in an absurd way and wanting the population to support tax increases, and there were ten taxes that were going to be increased yesterday, no one, not me, not the country will support it. That’s enough. Let’s stop inventing culprits. Shame on you, Haddad. Respect Brazilians, cut spending, think that we need to govern, we need to get off the platform, we need to work and make a difference — said the governor of São Paulo.