Brazil’s 7.5% Tax Bill Plan Rattles LCA, LCI Markets

Brazil President Luiz Inacio Lula da Silva’s administration is racing to balance public accounts ahead of next year’s elections, with the economic team now focused on offsetting the IOF tax.

One option under debate is raising the proposed income tax on Agribusiness Credit Letters, known as LCAs, and Real Estate Credit Letters, known as LCIs, to 7.5% starting in 2026, according to a draft of the bill presented Wednesday by the bill’s rapporteur.