By Marcela Ayres
BRASILIA (Reuters) -Brazil's finance minister said the government plans to send Congress two separate bills with fiscal measures on Tuesday, reviving provisions that were previously included in an executive order that expired after lawmakers failed to vote on it.
Speaking to GloboNews TV, Finance Minister Fernando Haddad said the first bill will include spending containment measures and limits on the use of tax credits by companies, while the second will raise taxes on online betting firms and fintechs.
He noted the first bill alone could lead to over 20 billion reais ($3.70 billion) in fiscal gains.
President Luiz Inacio Lula da Silva faced a fiscal impasse after Congress let an important executive order lapse without a vote earlier this month.
The proposal aimed to help the government meet its 2026 primary surplus target of 0.25% of gross domestic product by overhauling investment taxation, raising levies on fintechs and online betting firms, and capping the use of tax credits by companies.
It also included tighter controls on the granting of certain social benefits. The government had estimated the measure would generate 14.8 billion reais in fiscal gains this year and 36.2 billion reais ($6.70 billion) in 2026.
But with many lawmakers resisting further tax hikes, the measure expired before being considered.
Amid the fiscal gap, the government this week asked Congress to again delay a vote on the 2026 budget bill, which sets next year's fiscal target and was submitted in April. Lawmakers typically approve the bill by July.
Haddad also said on Tuesday that the current interest rate level, at 15% and representing a real rate of more than 10% after accounting for inflation, is "too restrictive."
He said that consumer prices have been behaving increasingly well, nearing the upper band of the 3% target range, which has a tolerance margin of 1.5 percentage points in either direction.
Amid expectations of an upcoming in-person meeting between Lula and U.S. President Donald Trump, Haddad said that during a phone call earlier this month, the Brazilian leader left the door open to discuss any topic, including currency issues and the situation in Venezuela.
If the one-on-one meeting follows the tone of that call, "I think we can expect good news," he added when asked about the possibility of the United States reversing a 50% tariff on several Brazilian goods.
($1 = 5.4039 reais)
(Reporting by Marcela Ayres, Editing by Franklin Paul and Chizu Nomiyama )
