Brazil's heated debate over betting taxation has intensified once more as Finance Minister Fernando Haddad said part of the opposition Liberal Party is aligned with the Government's plans to raise levies on betting operators.
Haddad described "the good side of the PL" as supportive of correcting tax inequities and ending what he called an "unjust privilege" extended under the former President Jair Bolsonaro's administration, which exempted betting companies from taxation for four years.
The Government is preparing new bills to replace the failed provisional measure that sought to raise the betting tax rate from 12% to 18%.
That proposal collapsed earlier this month, exposing divisions in Congress between those who want to increase state revenue and those fearing higher costs could push operators offshore.
Amid this backdrop, Brazil's National Confederation of Industry (CNI) launched the "CIDE-Bets" initiative, a proposed 15% selective tax on every online bet, aimed at financing healthcare and education while reducing inequality between the production and betting sectors.
The Brazilian Institute of Responsible Gaming (IBJR), which represents major national and global operators, criticized the proposal, labelling it "gravely harmful" and warning that it would strengthen the illegal market.
"A 15% tax on each bet would punish compliant operators and reward those who pay nothing," said IBJR director Andre Gelfi, adding that the legal market already faces an effective tax burden of around 25%.
Thanks to differing proposals and ideas, the conclusion to Brazil's betting tax saga seems far from near; besides the plans put forward by the Finance Minister and CNI, Senator Sérgio Petecão also introduced a new bill proposing a temporary 27.5% tax on operators until the implementation of Brazil's new tax reform.
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