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STF recognizes Congress’ failure to tax large fortunes, but does not impose deadline

BySimon Rousseau Posted onNovember 6, 2025 3:31 pmNovember 6, 2025 3:31 pm
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The Federal Supreme Court (STF) decided this Thursday that Congress failed to regulate the taxation of large fortunes, as provided for in the Constitution. The ministers chose, however, not to set a deadline for the legislation to be enacted.

By seven votes to one, the ministers agreed to an action presented by PSOL requesting recognition of the omission. Minister Flávio Dino suggested establishing a two-year deadline for the Legislature to resolve the situation, but was unsuccessful.

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The Constitution determines that it is up to the Union to impose taxes on “large fortunes, in accordance with complementary law”. A law of this nature, however, has not been enacted in the 37 years since the promulgation of the constitutional text.

The process began to be analyzed in 2021, in the virtual plenary. The rapporteur, minister Marco Aurélio Mello (now retired), agreed with the assessment that there was an omission by Congress and added that the tax could help reduce the deficit in public accounts. Marco Aurélio chose, however, not to set a deadline for Congress, considering that it would be an interference with another Power.

This Thursday, Cristiano Zanin agreed with the rapporteur about the omission, and also failed to set a deadline, but for another reason: the minister considers that the federal government is already acting to establish a tax of this nature. Zanin was accompanied by Nunes Marques, Dias Toffoli, Cármen Lúcia and Alexandre de Moraes.

Read more:  Brazil starts energy imports from Venezuela

The only minister to disagree with the taxation was Luiz Fux, who stated that he adopted this position in “deference” to Congress.

Simon Rousseau
Simon Rousseau

Hello, I'm Simon, a 39-year-old cinema enthusiast. With a passion for storytelling through film, I explore various genres and cultures within the cinematic universe. Join me on my journey as I share insights, reviews, and the magic of movies!

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