Haddad cited betting when defending the government's tax policy, arguing that the revenue-related measures aim to combat privileges. Virtual betting houses were exempt from paying taxes in Brazil between legalization in 2018 and the approval of a regulatory framework in 2023.
"For me, betting should be treated somewhat like cigarettes and alcohol. It's a difficult matter to manage, and there are several cases in history where, when prohibited, it worsens," the minister stated. "Now, we have to bring this sector under control once and for all."
Less than a month ago, the Ministry of Finance sent Congress a provisional measure (MP) that, among other things, increases taxation on betting. According to the ministry, the tax burden for these companies was substantially lower than that of other companies.
Previously, the tax on betting was 12% of net revenue (which discounts the amount returned in prizes). With the MP, it increases to 18%. The MPs have immediate legal effect but must receive Congressional approval to remain in effect.
The minister also said he is expected to meet with the Speaker of the Chamber of Deputies, Hugo Motta (Republicans-PB), later this week. Relations between the government and the legislature have been strained since Congress hastily repealed the decree that raised the IOF (Tax on Financial Transactions).
The Finance Minister said he has no right to have strained relations with the Speaker of the House because Brazil depends on Motta's successful conduct of his work, and that "neither of them" wants a fight.
Haddad also stated that he cannot anticipate the Supreme Federal Court's decision—Justice Alexandre de Moraes has called a conciliation meeting on the IOF (Tax on Financial Transactions) for the 15th—by announcing any alternative measure to compensate for any potential loss of revenue. "I've never left a negotiating table. I only leave with an agreement," Haddad stated on this topic.
For the minister, the IOF impasse does not affect the proposed Income Tax exemption for taxpayers earning up to R$5,000 (US$915).
"I believe this bill will be approved with a wide margin of support," he stated. "I believe that Congressman [Arthur Lira (PP-AL), former Speaker of the House and rapporteur of the exemption bill] has already formed his opinion on the matter."
Haddad also said that there are no plans to revise the surplus target, and he reiterated the importance of tax justice, an issue that has mobilized the government's base in recent days.
"The 1% [the wealthiest segment of the population] must recognize that the time has come," he said. "The necessary fiscal adjustment cannot fall solely on the poor."
Source: GMB
