A new bill moving through Brazil’s Federal Senate proposes exempting teachers earning up to BR10,000 ($1,892) per month from income tax, with the fiscal impact compensated by revenue generated from regulated sports betting.
Filed as Bill No. 5,143/2025 by Senator Fabiano Contarato, the proposal amends Brazil’s Income Tax Law and adds teachers working in early childhood education through higher education to the list of those eligible for tax relief.
The exemption would apply exclusively to professionals whose income is derived solely from teaching activities.
To preserve fiscal balance, the bill explicitly ties the forgone tax revenue to proceeds collected from fixed-odds betting, which has been regulated under Law No. 14,790/2023.
Since the formal launch of Brazil’s regulated betting market, the sector has become a growing source of federal revenue, increasingly positioned as a funding mechanism for public policy initiatives.
According to Contarato, the fiscal impact of the exemption is expected to be limited, while the potential social return could be significant. In the bill’s justification, the Senator argues that Brazilian teachers continue to earn less than other professionals with equivalent levels of education, despite recent wage adjustments.
Lawmakers backing the measure argue that tax relief could help curb the ongoing loss of qualified professionals from the education system, particularly in primary and secondary education.
If approved, the bill would affect thousands of educators nationwide while further embedding betting tax revenue into Brazil’s broader public finance framework. The proposal is still awaiting review by Senate committees before advancing to a full vote.
Rising spending on online betting has been linked to shifts in household consumption patterns, including slower growth in Brazil’s food retail sector
