The short-lived Normative Instruction No. 2.219/2024 from the Brazilian Federal Revenue Service, which was in effect for only two weeks, introduced new rules for monitoring financial transactions, including those made via PIX.
This regulation, which lasted less than a month, was swiftly revoked by the government after widespread public outcry. Under its provisions, financial institutions were required to report specific financial transactions every month, primarily for cross-referencing tax information.
For PIX transactions, the normative instruction required financial institutions to submit reports to e-Financeira, a tool the Federal Revenue Service created in 2015. This system mandates the disclosure of financial transactions by individuals and businesses whenever total transactions exceed BRL 5,000 for individuals and BRL 15,000 for businesses.
However, after igniting controversy and facing severe backlash, the government backtracked. But this reversal only sparked more questions: Was there a plan to tax PIX transactions? What was the government’s true objective? What was the situation before this regulation, and what happens now?
PIX is an instant payment system that allows wire transfers and payments 24/7. The Central Bank of Brazil launched this swift, convenient, and frequently free-of-charge payment system in November 2020. Since its creation, PIX has been widely adopted across Brazil.
With massive adoption, it has become a landmark in financial inclusion, surpassing 150 million registered users by 2024, including individuals and businesses. It has effectively replaced traditional bank transfers such as TED (Available Electronic Transfer) and DOC (Credit Order Document), and cash transactions, enhancing convenience and reducing operational costs. In 2023 alone, PIX transactions surpassed BRL 14 trillion, demonstrating its profound impact on daily life and cementing its position as Brazil’s leading payment method.
Was there ever an intention to tax PIX? As far as public information suggests, there has never been a political intention to impose a tax on PIX transactions. Its widespread popularity and influence were already well understood, and the recent public outcry only reinforced this fact. To put things in perspective, PIX transactions have dropped by approximately 15% since early January 2025 compared to December 2024—the steepest monthly decline since the system’s launch in 2020. Public concerns over excessive government surveillance have driven this decrease. Up to now, claims of an imminent PIX tax appear unfounded.
On the other hand, the government’s true objective was clear: to tighten oversight of tax evasion by cross-referencing data on taxable but undeclared financial transactions. In other words, the regulation was not intended to tax the act of transferring money via PIX but to monitor the underlying taxable events that led to those transactions.
What happens now? With the repeal of Normative Instruction No. 2.219/2024, the Federal Revenue Service has resumed monitoring financial transactions under previous regulations and mechanisms, which already imposed significant oversight. The primary tool remains the e-Financeira system, regulated by Normative Instruction No. 1.571/2015, which requires financial institutions to report transactions exceeding BRL 2,000 for individuals and BRL 6,000 for businesses.
But wait—doesn’t this make things worse for taxpayers? It would be naive to think that the Federal Revenue Service isn’t continuously improving its technological tools to analyze financial data. However, the revoked regulation and the reinstated one have key differences.
The revoked instruction specifically targeted PIX transactions. It established a cumulative threshold of BRL 5,000 for individuals, which could be reached through multiple small transactions. In contrast, the reinstated regulation applies only to transactions exceeding BRL 2,000 each and imposes less stringent reporting requirements.
In summary, financial oversight has not changed dramatically. However, this situation presents an opportunity for deeper reflection on the harmful effects of tax evasion in Brazil, the country’s high and regressive tax burden, and, most importantly, the lack of adequate public service returns.
Tax evasion represents a significant challenge to Brazil’s economy and social justice. Studies indicate that the country loses over BRL 417 billion annually due to tax evasion, with undeclared corporate revenues estimated at BRL 2.33 trillion annually.
At the same time, Brazil’s tax burden—the total amount of taxes collected as a percentage of GDP—is one of the highest in Latin America, reaching approximately 33% of GDP in 2023. This means that for every BRL 100 generated in the economy, BRL 33 goes toward taxes. While this tax burden is similar to that of developed nations like Germany and France, those countries offer significantly better public services in return.
A major issue is Brazil’s high tax burden combined with a regressive tax system, where most revenue comes from indirect taxes on consumption. This structure disproportionately affects the poor, while wealthy individuals contribute less proportionally to total tax revenue.
Thus, it is impossible to ignore that this micro-level financial monitoring had a clear target: not to tax PIX itself, but to crack down on the informal economy, which continues to operate on the margins of the formal tax system.
To make matters worse, this situation has further damaged the government’s already struggling reputation. Instead of addressing the budget deficit through spending control, it has focused on increasing tax collection. Additionally, poor communication strategies have further fueled public frustration. Amid deep political polarization, a sense of injustice has spread across society—one that cannot be ignored. At least for now, it hasn’t been.
Autor: Guilherme da Costa Ferreira Pignaneli • email: guilherme.pignaneli@ernestoborges.com.br
