The House rejected the measure that taxes betting companies, the STF will analyze the case against the payroll tax relief for 17 economic sectors, and the case regarding the Ferrogrão railway project has been suspended

BRAZIL POLITICS - Report 09 Oct 2025 by Murillo de Aragão and Cristiano Noronha

The government suffered a major defeat in Congress as the Lower House rejected Provisional Measure (MP) 1303, which dealt with the taxation of betting companies (“bets”) and tax-exempt bonds. Separately, Supreme Federal Court (STF) Justice Cristiano Zanin authorized the merits trial of the case concerning the extension of payroll tax relief for 17 economic sectors and municipalities. The case will be analyzed in the Court’s virtual plenary between October 17 and 24. In another case, concerning the Ferrogrão railway project, Justice Alexandre de Moraes voted to uphold the constitutionality of the law (Law 13,452/2017) allowing part of the Jamanxim National Park in Pará to be used for the railway, which would connect Pará to Mato Grosso for agricultural exports.

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