To ensure approval of the measure that increases taxation on sports betting and financial investments, the government is relying on the support of its congressional allies, along with the efforts of ministers and party leaders, to guarantee that the MP is voted on and approved in the Joint Committee, which meets this Tuesday (7) at 9 a.m.. This task force is holding meetings to find a viable path for approval in committee and subsequently in the plenary sessions.
The push comes at a critical moment: if the measure is not approved by both chambers of Congress by Wednesday (8) after passing the committee, it will expire. The government is aware that the proposal faces resistance from several economic sectors — particularly construction and agribusiness. The sports betting industry also opposes the measure, warning it could open the door to expanded illegal operations in Brazil.
The measure was issued in June to offset the revocation of a presidential decree that had previously raised the Tax on Financial Operations (IOF).
The rapporteur, Deputy Carlos Zarattini (PT–SP), is negotiating adjustments to the text with both the government and the Parliamentary Front for Agribusiness (FPA), which opposes taxation on the incentive fund that finances the sector — particularly Agribusiness Credit Bills (LCA).
“We’re making a lot of progress in this discussion on financial instruments such as LCA, LCI, and LCD,” Zarattini explained. He added that he will seek an agreement with the Ministry of Finance to reduce taxation on these instruments “to ensure we continue to have funding available.”
Regarding sports betting and online gaming, the rapporteur maintained the proposal from the original Provisional Measure, raising the tax rate from 12% to 18%. Both Zarattini and the government have so far dismissed concerns raised by industry associations that the higher tax could reduce overall revenue by pushing more bettors toward the illegal market.
Source: GMB
