Haddad says taxing LCIs and LCAs will regulate Brazil's market

Brazil's Finance Minister Fernando Haddad stated that taxing LCIs and LCAs is intended to regulate an irregular market, not to raise revenue. He questioned the disparity in taxation between public Treasury bonds and these instruments. Haddad explained that the goal is to reduce the difference in returns, making the market fairer. This comes as a proposal suggests increasing the income tax rate on LCAs and LCIs from 5% to 7.5% starting in 2026. The proposed tax adjustment aims to maintain tax exemptions for other investment types like incentivized debentures and real estate and agribusiness receivable certificates.