Brazilian Senate to debate tax hike on online gambling in November
The discussion of the bill that increases taxes applicable to online gambling and financial institutions was postponed for a week and will take place in the second half of November, according to Brazilian Senate authorities.
The decision was made following a meeting between the Minister of Finance, Fernando Haddad, Senator Renan Calheiros (MDB-AL) —author of the proposal— and the rapporteur of the text, Eduardo Braga (MDB-AM).
The initiative seeks to double the rate on the gross revenue from bets, increasing it from the current 12% to 24%, and also includes an increase in the Social Contribution on Net Profit (CSLL) for banks and fintech companies.
The objective of the bill is to strengthen public revenues and compensate for the fiscal loss derived from the expansion of the Income Tax exemption for workers with incomes up to R$ 5,000 (USD 933) per month.
According to estimates from the Ministry of Finance, the measure could generate approximately R$ 18 billion (USD 3.36 billion) additional revenue over the next three years.
“The budgetary impact is not huge, but it is relevant to maintain fiscal balance,” explained Fernando Haddad, who emphasized the need to approve the proposal before the end of the year.
Senator Renan Calheiros confirmed the postponement of the vote at the request of the economic team:
“It will not be next week, but the following one, because Finance asked for more time to discuss the technical and political details of the text,” he said.
For his part, rapporteur Eduardo Braga highlighted that the progress of the bill will require interinstitutional coordination between the Ministry of Finance, the Central Bank, the Financial Activities Control Council (COAF), and the Federal Revenue Service, in order to strengthen the oversight of the financial system and combat illegal betting platforms operating without a license in the country.
From the Executive Branch, the Minister of Institutional Relations Gleisi Hoffmann expressed her support for the measure, calling it a “necessary and coherent” initiative with the government’s fiscal objectives:
“We have great sympathy for this project. It restores what was in our provisional measure and goes a little further,” she stated.
Finally, the Government leader in Congress, Randolfe Rodrigues, assured that the adjustment in the schedule will not affect fiscal targets or the budget timetable:
“The consideration of the bill causes no harm. It will be voted on and the law will be incorporated with the provisions already discussed in the Chamber,” he concluded.
With this measure, Lula’s Government seeks to balance its public accounts and strengthen supervision over online gambling, in a context of rapid expansion of the digital betting market in Brazil.
Tags: Brasil, online betting taxes, Brazil betting regulation