The betting companies argue that the tax burden currently levied on the sector is already close to 50% of revenue. With new taxes, the segment says that most companies would not renew their five-year concessions.
IOF in the crosshairs
The movement of the betting sector entities came after the meeting on Monday (2) between Haddad and the presidents of the Chamber of Deputies, Hugo Motta (Republicans-PB), and of the Senate, Davi Alcolumbre (União-AP).
The meeting discussed alternatives to overturn the increase in the IOF, a measure taken by the government to comply with tax rules and which displeased the leadership and other leaders of the National Congress.
One of the possibilities raised during Haddad's meeting with the presidents of the Chamber of Deputies and the Senate would be to back down on the increase in the IOF rates in exchange for increasing the taxation of the so-called 'Bets'.
In addition to requesting a meeting with Lula's ministers, the entities representing betting houses also issued a public statement expressing concern about the possible tax increase in the sector.
“The adoption of measures that compromise legal operations tends to cause the opposite effect to that desired: the strengthening of clandestine platforms that do not collect taxes, do not comply with regulatory standards and expose consumers to the risk of fraud, gambling addiction and other vulnerabilities, as has been observed in recent decades,” says the note signed by six entities.
The institutions that signed the note are:
– Brazilian Association of Games and Lotteries (ABRAJOGO)
– Betting and Fantasy Sports Association (ABFS)
– International Gaming Association (AIGAMING)
– National Association of Games and Lotteries (ANJL)
– Brazilian Institute of Responsible Gaming (IBJR)
– Brazilian Institute of Legal Gaming (IJL).
Source: Metrópoles
