During the meeting, the committee scheduled four public hearings to be held in August to further discuss the MP's main points.
The first, scheduled for August 7th, is expected to be attended by a representative from the Ministry of Finance. The remaining hearings are expected to address the taxation of currently exempt assets and instruments, the increase in the Social Contribution on Net Income (CSLL), taxation on betting, and the fishing season insurance. The latter is scheduled for August 20th.
The Provisional Measure defined a package of tax measures on financial investments to replace the increase in the Financial Transactions Tax (IOF) decreed in May.
The new rules reduce the tax on companies and VGBL-type insurance and increase the tax on sports betting and online gaming, crypto assets, and exempt investments such as Real Estate Credit Notes (LCI) and Agricultural Credit Notes (LCA).
The bill increases the rate for betting, which will rise from 12% to 18% in October 2025.
The sector has been signaling to the government that the measure, rather than increasing federal revenue, will reduce revenue, as many companies may leave the country due to the tax burden, which is expected to reach around 55% with the change.
Estimates indicate that the increase in iGaming taxes could result in losses of up to R$2.8 billion (US$503m) in revenue if the measure is not repealed. Another R$2.4 billion (US$430m) could be lost to the federal government's coffers if companies that applied to the Secretariat of Prizes and Betting (SPA) seeking a license withdraw their applications.
The industry has emphasized that the current tax burden is already high and that the government should work to curb the operation of illegal websites, bringing more players into the regulated market, which would substantially increase revenue.
The package was launched after a presidential decree was issued about two weeks ago, which increased the IOF (Financial Operations Tax) on various financial transactions. The backlash was immediate in Congress and the market: more than 20 bills were introduced to overturn the decree.
The government then revoked part of the MP on the same day, maintaining the levy on only some transactions, such as the betting tax, and committed to presenting an alternative.
Source: GMB
