Brazil’s Finance Minister defends online proposed betting tax hike in Congress

Brazil’s Minister of Finance, Fernando Haddad, appeared before a joint congressional committee to defend MP 1.303/2025.

The MP is a provisional measure which includes, among other actions, raising the tax on online betting from 12% to 18%.

Haddad argued that the increase is intended not only to boost state revenue but also to prevent what he described as “consumption at levels considered harmful to public health.” 

The betting provision is one element of a broader package designed to help the Federal Government reach its target of a 0.25% primary surplus in 2026.

The measure also overhauls parts of Brazil’s financial taxation system, which includes unifying the Income Tax rate on investment earnings at 17.5% and ending certain exemptions on incentivised bonds. 

However, the betting tax proposal has been among the most closely watched, especially due to ongoing debates in Congress about regulation and market conduct.

Good to know: Haddad recently said he believes online betting should be banned in Brazil

During the hearing, the committee members questioned whether some of the other fiscal changes in MP 1.303/2025 could reduce competitiveness in certain parts of the national gambling sector, among other financial markets.

Lawmakers remain divided between those advocating higher rates to hold back gambling-related harm and those warning that steep increases could push players towards unlicensed platforms.

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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