Brazilian lawmakers are gearing up to debate a controversial new crypto tax rule that would eliminate exemptions and slap a flat 17.5% tax on all trades. The future of the measure hangs in the balance.
Brazil’s Congress is about to go full gladiator mode over a hot-button issue: crypto taxes. 👀
Lawmakers are prepping to duke it out over a Provisional Measure (aka an emergency law) signed by President Luiz Inácio Lula da Silva back in June. This new rule, which significantly expands how crypto gets taxed, has sparked a wave of backlash—and the clock is ticking on its fate.
Here’s what went down: Under the old tax system, only crypto trades above 35,000 reais (around $6,320) got taxed. But now? The new setup slaps a flat 17.5% tax on all trades, no matter how small. Yeah, even your tiny trades are fair game now.
Things are about to heat up fast. Starting July 26, this Provisional Measure becomes an urgent matter—which means Congress must press pause on everything else until it decides whether to approve or scrap the rule altogether. A hearing is scheduled for August 6, and lawmakers have until October 8 to make a final call. If they don’t approve it by then, the measure goes poof. 💨
Why the rush? The Brazilian government is trying to boost its revenue, especially through the financial transaction tax. And crypto traders? They’re now seen as a potential goldmine.
But here’s where it gets spicy:
The rule doesn’t just tax regular trades—it might also hit assets under self-custody and even DeFi activities. Yeah, it’s got that wide a reach.
Critics are not holding back. Some members of Congress have already filed proposals to repeal the measure altogether, calling it potentially illegal. Meanwhile, local reports say the Congress is pretty divided, and there’s no clear consensus on which way the vote will go.
Translation: expect fireworks.
So, if you’re a crypto holder or trader in Brazil, brace yourself. Big changes could be coming—and they might hit your wallet directly.
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