Photo: AP
Photo: AP
Meanwhile, Speaker of the House Hugo Motta aims to vote in the coming weeks on a separate bill establishing a 10% across-the-board cut in all tax exemptions, in an effort to restore fiscal balance—one of the main goals of the now-expired Provisional Measure.
“The Chamber is fully aware of its role in building a responsible fiscal agenda. We are talking about billions of reais that could be redirected to public policies, health, education, and infrastructure. Parliament cannot ignore this debate. Brazil needs a budget with fewer patches and more predictability. The review of tax exemptions moves us in that direction,” Motta told GloboNews.
Authored by Government Leader José Guimarães, the measure is expected to increase federal revenue by around R$ 20 billion (US$3.7bn) in 2026. The proposal is currently under review by the Finance and Taxation Committee, and lawmakers hope to approve it next week before moving it to the floor for a full vote. The government supports the measure but insists that Congress also pass the taxation on ‘Bets’ and fintechs.
Two bills are already under discussion in the Chamber of Deputies: one doubles the tax on ‘Bets’ from the current 12% to 24%, and another proposes an increase to 25%. On October 22, the Finance and Taxation Committee approved an urgency request for the bill introduced by Deputy Lindbergh Farias, which doubles the current rate. This means the proposal will go directly to the floor vote, skipping other committee stages.
Another bill, authored by Deputy Pauderney Avelino, which proposes raising the tax to 25%, is expected to be attached to Lindbergh’s proposal. In his justification, Avelino stated that tax rates in regulated jurisdictions range between 20% and 30%. However, he did not take into account Brazil’s overall tax burden on any economic activity—including the iGaming sector, which already faces an effective tax load of around 40%.
According to the Palácio do Planalto and the Ministry of Finance, even if the new taxation is not approved, the government will continue to push the issue, arguing that it represents tax justice. Should the proposal fail to advance, government allies believe the political cost will fall on Congress.
Source: GMB / g1
