"The tax increase aims to align Brazil with international practices, where rates applied to GGR vary between 20% and 30% in the main regulated jurisdictions, such as the United Kingdom, Spain, and Portugal," says Congressman Pauderney Avelino in his justification.
Ignoring the already high tax burden applied to sports betting and online gaming companies, along with other taxes levied on any economic activity in Brazil, the congressman continues: "The new level maintains the competitiveness of the national betting market, ensuring the economic sustainability of the operators, while also expanding the State's capacity to allocate part of this revenue to public policies of social interest."
The bill was introduced last Friday (10), one day after the government leader in the Chamber of Deputies, Congressman Lindbergh Farias, introduced another, raising the tax to 24%. The lack of awareness of the risks of pushing the sector into the illegal market demonstrates how unconcerned the parliamentarians are about the issue.
In his justification, Representative Avelino proposes that 19% of the GGR tax remain allocated to the purposes already provided for by law and that the remaining 6% be allocated to social security, specifically healthcare, strengthening funding for the Unified Health System (SUS) to address demands related to mental health, addiction prevention, and educational campaigns on Responsible Gambling.
Source: GMB
