The text, authored by Senator Renan Calheiros (MDB-AL), was presented last week with the aim of reviving points of the Provisional Measure (MP) that provided alternatives to the larger increase in the Tax on Financial Operations (IOF), which was blocked in the Chamber of Deputies.
According to the rapporteur's calculations, the positive fiscal impact of the measures would be R$ 4.98 billion (US$927m) in 2026, R$ 6.38 billion (US$1.18bn) in 2027, and R$ 6.69 billion (US$1.24bn) in 2028.
The largest amount would come from the increase – from 12% to 24% – in the tax rate for the so-called ‘Bets’: R$ 13.3 billion (US$2.47bn) over the three years.
The project stipulates that part or all of the amount collected from the increase be directed to the social security of states and municipalities that have revenue losses with the increase in the income tax exemption bracket for salaries up to R$ 5,000 (US$930), the subject of another project under consideration in the Senate and which may also be voted on in the CAE this Tuesday (4).
Arguments against betting companies are wrong in claiming that they pay 12% in taxes. In reality, this taxation is based on GGR (Gross Gaming Revenue) and is not limited to that. Like all other economic activities in Brazil, betting companies pay other taxes, resulting in a tax burden close to 40%. With the increase to 24% on GGR, the sector indicates that numerous companies will be unable to continue operating.
Furthermore, the increase contributes to the growth of the illegal market, which does not pay taxes or follow compliance and Responsible Gaming rules. Clandestine websites represent practically 50% of the Brazilian betting market and remain strong because they offer more attractive odds due to tax evasion.
Source: GMB / Estadão
