Last week, Congressman Carlos Zarattini presented his report on the government's Provisional Measure 1,303, an alternative to the increase in the Tax on Financial Transactions (IOF). Despite making several changes to various points in the text, he maintained the increase in the betting tax from 12% to 18% of the GGR, as originally proposed by Minister Fernando Haddad.
In response to the request for a collective review, a new meeting was scheduled for this Tuesday (30), when the report will be voted on.
In his report, Zarattini establishes a 7.5% income tax on income from Agribusiness Credit Notes (LCAs) and Real Estate Credit Notes (LCIs). As the congressman had previously stated, income from savings accounts, produced by various financial investment securities, is exempt from withholding income tax. Incentivized debentures also remain exempt from income tax.
Another item that remained unchanged in the report compared to the government's original draft is the maintenance of the increase in the contribution rate on gross betting revenue (GGR) from 12% to 18%, with the additional 6% allocated to social security for healthcare initiatives.
The rapporteur considered this a measure of "fiscal and social justice."
If approved, the bill will be submitted to the full House and Senate. Some of the sector's key players believe the measure is a shot in the foot for the government, which is expected to lose revenue, given that illegal betting still represents over 50% of the market, and bettors, faced with less attractive offers, may migrate to unlicensed bookmakers.
Source: GMB
