According to him, the Federal Revenue Service would have difficulty carrying out retroactive collection, even with an effort to identify betting companies that operated in the country in the past and took the funds abroad.
In light of this, a program was created within the report of the Provisional Measure (MP) as an alternative to the Tax on Financial Transactions (IOF) to repatriate these funds.
The statement was made during a press conference in the Federal Senate to detail the agreement reached among lawmakers for the vote on the MP.
The report presented by Congressman Carlos Zarattini (Workers' Party/SP) withdrew the government's proposal to increase taxation on betting profits from 12% to 18%.
Haddad explained that the repatriation of the funds should generate R$5 billion (US$940m) in revenue, which would be equivalent to three years of revenue if the original measure submitted by the government were approved.
He believes that this time will allow for a more cautious analysis of the sector, monitoring its progress, and returning to the discussion at a more appropriate time.
"Congress itself will, in due course, examine these figures and determine whether it is appropriate to maintain the current situation or, in light of the sector's dynamics, return to deliberate on the matter," he said.
He reiterated that former President Jair Bolsonaro's administration failed to enforce Brazilian legislation, leading to the betting boom.
Regarding the vote, he assessed that there were mutual concessions between lawmakers and the government to ensure the measure was voted on this Tuesday (7).
Source: GMB / Metrópoles
