Brazil’s President Lula backs betting tax increase to offset fiscal pressure

Following public support from both Brazilian Vice President and the Senate President on raising the national betting tax, President Luiz Inácio Lula da Silva has also defended the recent economic fiscal proposals from the Ministry of Finance aimed at increasing federal revenue.

The proposals include a potential hike in the IOF, the national tax on financial operations and greater taxation on the betting sector, raising it from 12% to 18%.

Lula described the initiative by Finance Minister Fernando Haddad as “nothing major,” noting the move targets fintechs, banks and online betting platforms as part of a broader compensation strategy to avoid budget cuts in essential areas like health and education.

Lula also reinforced the Government’s intention to ensure that platforms like betting operators contribute fairly, saying the IOF adjustments are designed to avoid slashing R$40bn from public spending.

Good to know: The the national debate over betting taxes has been criticized by industry leaders, including Brazil’s supermarket association, which questioned why bets are taxed less than essential goods

The President positioned the proposal as a necessary step to balance fiscal responsibility with social investment, especially amid political resistance and a push in Congress to overturn the tax decree.

He also reiterated the importance of “fighting this fight,” stressing that high-income sectors like betting must contribute more.

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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