Brazil: Official suggests raising betting taxes to reduce impact of Financial Operations Tax

The President of Brazil’s National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, publicly proposed raising taxes on online betting companies as a possible way to lessen the impact of the recent increase in the country’s financial operations tax (IOF).

Mercadante argued that financial responsibility should be shared among multiple governmental sectors, stating the country “needs an agenda that is not only driven by the Ministry of Finance” and also that “business entities must also contribute with solutions and proposals. I offer a public suggestion: let’s raise the tax on bets, (…) which could allow us, for instance, to reduce the impact of the IOF and provide alternatives.”

He also acknowledged that the tax’s recent increase adds pressure to credit costs for both companies and consumers, but noted the measure is not unprecedented and has already been issued in the past.

Good to know: The IOF, or Tax on Financial Operations, is a Brazilian federal tax on credit, foreign exchange and insurance operations which affects consumer credit and foreign exchange, among other sectors 

In his remarks, he also repeated his longstanding criticism of the country’s high interest rates, which currently are at 14.75% per year.

Mercadante’s proposal to increase taxes on betting platforms comes as Brazil’s Government continues to adjust its regulatory landscape for online gambling, including licensing processes and certifying compliance bodies.

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.

Visit Profile

Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.