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Brazil: More tax developments, as Defence Ministry pushes for a piece of the pie

Senator Eduardo Braga plans to raise the betting tax gradually, reaching 18% by 2028.

4 min read
A senator and a minister
Key Points
Senator Eduardo Braga's report proposes gradual increases to GGR taxation for betting operators until 2028
The Defence Ministry seeks a share of betting tax revenue to fund military sports

Two parallel debates are unfolding around Brazil's market. Together, they reveal how multiple sectors are positioning themselves around the same revenue source, as the Government recalibrates its taxation model for licensed operators.

In the Senate's Economic Affairs Committee, the report filed by Senator Eduardo Braga sets out a phased increase affecting the betting and fintech industries.

For fintech companies, the CSLL rate would rise from today's 9% to 12% in 2026 and 15% in 2028.

For operators, the GGR rate would increase from 12% to 15% next year, reaching 18% by 2028.

The proposal frames the adjustment as a gradual, predictable mechanism aimed at helping the Federal Government to meet its fiscal targets, including eliminating the primary deficit by 2026, without replicating the political backlash generated by Provisional Measure 1303/2025, which attempted a higher tax but was ultimately withdrawn.

While Congress negotiates how much more legal operators should pay, another front has opened over how that revenue should be divided.

The Defence Ministry wants 1% of the resources currently allocated to the Ministry of Sports, part of the 36% of tax revenue set for sporting initiatives.

The proposal would redirect roughly BR50m ($9.34m) per year to military sports programmes, strengthening the budget of the Military Sport Commission in Brazil.

Sports Minister André Fufuca has reportedly not opposed the reallocation, but congressional backing remains uncertain.

As the market becomes a significant source of federal revenue, different sectors are trying to define their place within the national evolving ecosystem.

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