MAR 7 DE MAYO DE 2024 - 20:01hs.
Revenue generation of up to US$ 4.25bn per year

States and Congress of Brazil plan to create a tax on electronic betting games

In addition to building consensus for a tax reform, another proposal negotiated is the creation of a tax on electronic games (bets) that could finance the National Public Security Fund, with a generating capacity of up to US$ 4.25bn per year. 'It is another topic that we are working on and that, according to Davi and Maia, will be prioritized in Congress, along with the tax reform,' said the governors of Piauí, Wellington Dias (PT), and Goiás, Ronaldo Caiado (DEM).

The 27 governors of Brazil signed an agreement with the president of the Chamber, Rodrigo Maia (DEM-RJ), and the Senate, Davi Alcolumbre (DEM-AP), so that by the end of September the voting of at least four proposals of the "federative agenda" will be completed. The consensus is for urgent approval of projects that can generate additional and immediate revenue for the states for two purposes, as agreed also with the economic team: coverage of the Social Security deficit and injection of resources for public investments.

According to estimates by the governors themselves, if all projects, including an idea of taxation of electronic betting games to finance the National Public Security Fund are approved, states could count on with R$ 137.9 billion (US$ 368 million).

The agreement was sealed last week in Brasília, and had the governors of Piauí, Wellington Dias (PT), and Goiás, Ronaldo Caiado (DEM), as spokesmen of all colleagues. "He brought a message from the group of governors to prioritize the federative agenda," Wellington Dias told local newspaper Valor.

Something unprecedented in the country, the heads of State also signaled to the presidents of the House and Senate that there is general agreement on the need to approve a broad tax reform with unification of taxes and that the most consensual text so far is the presented by the deputy Baleia Rossi (MDB-SP), although additional suggestions are taken to Maia and Alcolumbre in the future.

In addition to building consensus for tax reform, another proposal negotiated is the creation of a tax on electronic betting games that could finance the National Public Security Fund, with a generating capacity of approximately R$ 16 billion (US$ 4.25bn) per year. "It's another topic that we are working on and that, according to David and Maia, will be prioritized in Congress, along with the taxr eform."

Source: GMB / Malu Delgado – Valor