“We cannot accept that a newly regulated sector, with all the conditions to operate in this market — operators have already paid licensing fees and followed the rules to operate — faces a ‘breach of contract’ that brings legal uncertainty to us. With a tax burden increase of this nature, the sector will collapse,” Fernando Vieira told Correio.
The CIDE is backed by the financial and productive sectors, which see the betting market as a source of losses. A study by the National Confederation of Commerce in Goods, Services and Tourism (CNC) from January this year pointed to losses of R$ 103 billion (US$19bn) to commercial establishments in the country due to betting in 2024.
On Tuesday (12), during a lunch with former Speaker of the House, Arthur Lira (PP-AL), representatives from the business community and industry advocated for including this measure in the bill he is reporting, which exempts from income tax those earning up to R$ 5,000 (US$925).
This measure would come in addition to the taxes already paid by the sector. Currently, the government charges 12% on Gross Gaming Revenue (GGR) and proposes raising the rate to 18% through Provisional Measure 1,303 of 2025, which also increases taxes on fintechs and starts taxing investments currently exempt.
Illegal market
Speaking to journalists, Lira did not rule out the possibility of including a tax increase on betting operators in the income tax bill, but said he still lacks figures to support the measure.
He focused, however, on criticizing the illegal market. According to the former Speaker of the House, the government could raise much more if it strengthened oversight against unlicensed betting operators.
“We have a concern — which we have already raised both with the president of the Central Bank and with the Ministry of Finance — that we have information indicating that 50% of betting companies are operating illegally, without paying taxes,” Lira said.
For Vieira, this is the right path to improve revenue. “Strangling the regulated betting sector will not solve Brazil’s revenue problem. It will only affect the regulated sector, and illegal betting will become more profitable,” he stated.
Source: Correio Braziliense
