Some senators took advantage of the interruptions during the reading of the report to criticize betting companies and make erroneous statements regarding the taxes paid by these companies.
Senator Ângelo Coronel took the floor to clarify the misinformation regarding the current tax burden and stressed that, more than increasing levies on the sector, the government should more effectively curb the proliferation of illegal websites.
He reminded the audience that 51% of betting sites operating in Brazil are illegal. “It is not plausible – not to say dishonest – to want to increase the tax burden on those who are legal and forget to combat illegal activity. This is absurd, and the Senate must raise its voice on this.”
Ângelo Coronel stated that if the illegal betting sites were shut down, the government would collect an additional R$ 11 billion (US$2.05bn) per year. “There are 81 legalized companies that paid R$ 30 million (US$5.6m) in concession fees and are paying 12% on the GGR (Gross Revenue) plus PIS, Cofins, ISS, CSSLL, and IR. This leads to a tax level of over 50%. Many people think that betting sites only pay 12%. That's a misconception. Betting sites are treated like any other company, generating their own taxes.”
“Our fear is that, if the tax increase is approved, there will be an exodus of these companies, as happened in Germany and Portugal, for example. How can they have an increased tax burden if the government does nothing to close the doors to illegality? This is a serious problem. The Senate must respond appropriately to prevent this revenue, which reached almost R$ 7 billion (US$1.3bn) in September and is expected to reach R$ 15 billion (US$2.8bn) by the end of the year, from being lost due to companies leaving the legal market.”
Source: GMB
