The vote on the bill in the Senate’s Committee on Economic Affairs (CAE), which had been scheduled for this Wednesday (5), did not take place at the request of the rapporteur, Eduardo Braga.
The bill proposes raising the levy on the gross revenue of online bets from 12% to 24%, in addition to increasing the CSLL rate charged to financial institutions and fintechs.
According to Braga, some adjustments still needed to be made to his final draft. The senator preferred to align both the message and the final text with Finance Minister Fernando Haddad. At the minister’s request, the proposal will only be considered by the CAE on November 18.
According to Renan Calheiros, the author of the bill, the request for more time was made by the Finance Ministry in a meeting with rapporteur Eduardo Braga, as the issue involves not only technical aspects, but also political considerations, given the concern that the bill could pass in the Senate but die in the Chamber of Deputies.
“’Bets’ won’t be next week, only the following one, because the Finance Ministry asked for more time to discuss,” the senator said as he left the floor.
After the meeting, Braga said the conversation at the Finance Ministry was excellent but that he was still working on the text. He noted that some measures need to be taken by the ministry itself to finalize the bill. Also present in the discussions was the president of the Senate, Davi Alcolumbre.
Both pointed out to Haddad the need for greater coordination and commitment from the Finance Ministry, COAF, the Federal Revenue Service, and the Central Bank to combat illegal betting. Before the meeting, Eduardo Braga stated:
“We are not even managing to solve the problem of illegal bets moving through the financial system, whether via fintechs or payment companies—whatever you want to call them—which hold these funds within Brazilian banks without any oversight from either the Central Bank or COAF.”
At the same time, the Minister of Institutional Relations, Gleisi Hoffmann, was in the Senate this Wednesday (5) to follow the vote on the bill that exempts income tax for those earning up to R$5,000 (US$930). At the Senate, she advocated for the bill that increases taxation on bets, banks, and fintechs.
“We are very supportive of this bill; we think it is a good proposal. It essentially restores what was in our provisional measure and goes a bit further. We are supportive, and if it passes in the Senate, we will work to ensure that it is approved in the Chamber,” the minister said. In conversations with senators and party leaders, she sought to build support for the proposal.
The minister’s concern is the resistance the bill faces not only in the Senate but especially in the Chamber of Deputies. The same concern was expressed by the rapporteur, who fears the proposal could be shelved in the Chamber. To avoid this, he is seeking coordination with the president of the Chamber, Congressman Hugo Motta.
“There is no point in approving a conclusive bill here in the CAE if it reaches the Chamber and is not approved or enforced. President Hugo Motta has an engagement in Argentina today, will then travel to Belém to attend COP, and we need an understanding between the Senate and the Chamber so that we can have a text that is approved by the National Congress,” Braga said.
Finance Minister Fernando Haddad stated this week: “It is too small an impact within the budget to cause turbulence in the budget bill. I will have to make a small adjustment to the budget (if the bill is not approved), but it is a small one.”
The government leader in Congress, Randolfe Rodrigues, is also involved in the negotiations and stated that the delay in voting on the betting bill will not harm the fiscal timetable and that the proposal will be considered in the coming weeks.
“Considering Senator Renan’s bill does not cause any harm. It will be voted on. The law will be incorporated, at least with provisions already used in the Chamber. And nothing will prevent Brazilians earning up to R$5,000 from no longer paying income tax,” Randolfe said.
Source: GMB
