Brazil's Haddad backs partial revival of expired fiscal measure

BRASILIA, Oct 15 (Reuters) – Brazil's Finance Minister Fernando Haddad on Wednesday backed recovering part of a key measure that expired after Congress failed to vote on it last week, considered crucial for the government to meet its fiscal goals. Speaking to reporters after a meeting with Senate President Davi Alcolumbre, Haddad said lawmakers agreed with parts of the measure such as tighter controls over government benefit registries and limits on companies' use of tax credits, noting that about 70% of the expected fiscal gain would come from those provisions. "I presented him with alternatives to recover, in some form, what is not in dispute," Haddad said. "We'll discuss these scenarios through the end of this week." The government had projected a positive fiscal impact of 14.8 billion reais ($2.71 billion) this year and 36.2 billion reais in 2026 from the proposal, which overhauled taxation of financial assets while also raising taxes on fintechs and online betting firms, amid other changes. After a congressional committee postponed on Tuesday the vote on the 2026 budget guidelines bill, which sets a primary surplus target of 0.25% of gross domestic product (GDP), Haddad said laws must be consistent with each other to ensure smooth budget execution. The government had relied on the expired measure to help meet next year's fiscal target. ($1 = 5.4528 reais) (Reporting by Marcela Ayres; Editing by Chizu Nomiyama )

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