“I am in favor of increasing taxes on ‘Bets’ and will push for the issue to be addressed in the MP,” deputy Cezinha de Madureira told Valor.
Although the proposal faces resistance in Congress — particularly from the Centrão bloc — Madureira, a former leader of the Evangelical Caucus, believes the initiative will gain majority support within that group.
In Congress, some supporters of higher taxation on online gaming platforms advocate for a rate as high as 27.5%, equivalent to the top personal income tax bracket. In the Senate, a bill authored by Senator Renan Calheiros and reported by Senator Eduardo Braga proposes doubling the tax on ‘Bets’ from 12% to 24%.
A previous MP that sought alternatives to raising the Financial Transactions Tax (IOF) — which expired without being voted on — proposed lifting the levy on online gaming to 18%. The government relies on this additional revenue to help meet fiscal targets.
The report by Senator Fernando Farias, rapporteur for the Brazil Soberano MP, has not yet been released. A prior meeting scheduled for October 14 was canceled. Cezinha de Madureira insists that this time the report “will be voted on and approved” in Tuesday’s session.
If successful, the chairman’s maneuver could allow the proposed ‘Bets’ tax increase to be inserted into the Brazil Soberano MP, as it falls under a related (tax) subject matter not yet deliberated by lawmakers.
President Lula issued the Brazil Soberano MP in August to mitigate the economic effects of higher tariffs imposed by the United States. The measure includes R$30 billion (US$5.5bn) in export credit via the Export Guarantee Fund (FGE), extensions to the Reintegra program, and longer deadlines for the drawback regime.
Amid speculation that the Finance Ministry has lost interest in the MP due to improving trade negotiations with the U.S., Madureira called that assumption “premature.” “I don’t believe the government will abandon entrepreneurs, especially in sectors like sugar and ethanol, wood, and agribusiness in general,” he said.
Source: Valor
