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Brazil: Chamber withdraws CIDE-Bets tax proposal

Lawmakers advanced the Antifaction PL Antifacção while stripping out a proposed levy on operators.

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Key Points
The Chamber of Deputies approved the anti-organized crime bill and sent it for presidential sanction
A proposed CIDE-Bets levy on sports betting was removed during plenary voting
A Senate official had estimated the tax could raise BR30bn per year

Brazil’s Chamber of Deputies has approved the bill known as “Antifaction PL,” legislation aimed at tightening measures against organized crime, but rejected the proposed tax on operators that had been included during the Senate stage, the CIDE-Bets.

The text had previously passed the Chamber but returned for a new vote after amendments introduced by senators. 

Deputy Guilherme Derrite, maintained as one of the main officials by Chamber President Hugo Motta, reinstated much of the original version approved by deputies, keeping only selected Senate changes. 

One of the most debated points was the creation of a contribution on sports betting, referred to as CIDE-Bets. 

In his report, Derrite initially incorporated the Senate amendment establishing the levy. However, during plenary deliberations, he accepted a separate amendment removing the provision.

According to Senator Alessandro Vieira, the proposed contribution could have generated an estimated BR30bn ($5.8bn) per year.

Despite that projection, centrist lawmakers pushed for the removal of the betting tax, requesting a separate vote on the issue. 

The move drew criticism from Government-aligned deputies. “We are heading toward a historic mistake. During the afternoon, there was talk of an agreement. Still, the motion to remove the taxation of bets is here,” said Deputy Lindbergh Faria.

The bill also included provisions related to resource allocation involving the Federal Police and revenue distribution to states and municipalities, elements that had generated friction between lawmakers and the federal government.

The Brazilian Institute of Responsible Gaming described the betting tax proposal as rewarding the illegal market, warning about potential impacts on market stability and competitiveness.

With the removal of the betting contribution, the final text approved by the Chamber excludes any new levy on the sector within the scope of the anti-organized crime package.

The bill now moves to presidential sanction.

Good to know

The CIDE-Bets fund were intended to finance public security initiatives and the prison system

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