Haddad’s speech dropping shares of Itaú (ITUB4), Bradesco (BBDC4) and BB (BBAS3)

Actions Itaú Unibanco (ITUB4), Bradesco (BBDC4) that it Bank of Brazil (BBAS3(The losses deepened after Economy Minister Fernando Haddad confirmed that the Treasury was preparing changes to interest taxes on property rights)jcp).

Among the proposals, he said, is a measure designed to tax sports betting platforms, which has already been sent for final evaluation by the Civic House.

At around 4:30 p.m., Itach fell 2.10% to R$28.39, Bradesco dropped 2.64% to R$16.61, and Banco do Brasil fell 47.63 to 1.83%. Santander gave up 0.43% at R$29.88. The sector also recorded a decline on the eve of issuing the second quarter budgets.

The banking sector is one of the most used sectors to reward shareholders.

Haddad plan

According to Reuters, the portfolio plans include early introduction of certain measures that are critical to achieving the goal of zero primary deficit in 2024.

In addition to the end of interest on equity, initiatives include a new taxation model for closed-end funds, the end of interest on equity (jcp) and regulate the collection of CSLL on tax benefits granted by states.

Other governments have tried unsuccessfully to cancel the payment jcp. By choosing this form of bonus instead of a dividend, companies can deduct the amount distributed from their taxable income.

*With information from Reuters