Brazil: Senate President backs plan to raise betting tax from 12% to 18%

New revenue plan includes higher rates on sports betting and IR on formerly exempt investments.

Brazil’s Senate President Davi Alcolumbre has voiced support for a set of new fiscal measures proposed by Finance Minister, Fernando Haddad, with an increase in the national tax rate on sports betting from 12% to 18%. This proposal is part of a broader effort to review tax exemptions and raise revenue to comply with Brazil’s fiscal framework.

“We need the courage to address a very sensitive issue: the debate on tax exemptions in Brazil,” as it was stated by Alcolumbre. “These benefits were important at some point in our national history. But the time has come for us to responsibly engage in this discussion.”

Measures shall be submitted via a provisional decree right after President Lula returns from his official trip to France. 

Good to know: The Ministry of Finance signed an agreement with Brazil’s banking federation to deliver financial education initiatives for bettors 

Scrutiny from legislators is also faced, with recent calls for Haddad to clarify the government’s stance on online betting operations.

The betting tax proposal has come as the Ministry of Finance continues efforts to reinforce regulation and consumer protection in the sector.

These developments show that betting regulation is now an important part of Brazil’s fiscal and political agenda, and regulatory ruling in the sector is expected to evolve further in the coming months.

Carlos Mendez

Writer

Odds tell a story long before the result does. When bettors learn to read that story properly, betting becomes a matter of discipline and value rather than emotion or guesswork.

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