Brazil: Minister faces more pushing over raising betting taxes
The bill aims to raise operators’ GGR tax from 12% to 24%.
Finance Minister Fernando Haddad has been warned by allied senators that the Government risks defeat in its attempt to pass the bill increasing taxes on operators and fintech companies.
The proposal, authored by Senator Renan Calheiros, was scheduled for discussion in the Senate’s Economic Affairs Committee earlier this week but it was postponed after senators requested more time to assess the measure.
According to sources, during a meeting with Senate President Davi Alcolumbre and the bill’s main name, Senator Eduardo Braga, Haddad was told that the current version of the text faces strong resistance, particularly regarding the proposed hike on fintech companies taxation.
Legislators reportedly said there are not enough votes to approve the bill, even within the committee.
The meeting, described by attendees as a “clear warning” to the Minister, reflected mounting pressure from financial and digital industry groups that have lobbied against the increase.
Haddad, in turn, is said to have responded that he would meet with the presidential office to “take the necessary steps” to secure support for the proposal.
The bill seeks to double the tax on betting operators’ gross gaming revenue (GGR) from 12% to 24% and raise the Social Contribution on Net Profit rate for fintech companies from 9% to 15%.
The Government estimates the measure could generate BR5 billion for the 2026 budget.
While the reviewed text is expected to be formally presented again soon, senators indicated it is unlikely to be put to a vote immediately, as negotiations with the Finance Ministry continue behind the scenes.
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