Brazil: Mayor proposes betting tax cut to attract operators in Belo Horizonte
City aims to reduce rate from 5% to 2% in effort to draw online betting companies and boost revenue.
Key Points
- Mayor Álvaro Damião submitted bill to lower municipal service tax for betting platforms
- The rate for bets would be set to drop from 5% to 2% if bill is approved
- City estimates BR2.8m in additional revenue in 2025
Álvaro Damião, the Mayor of Belo Horizonte, the capital of the state Minas Gerais, has submitted a bill to the City Council proposing a reduction in the municipal service tax for online betting companies.
The goal, according to the mayor’s office, is to incentivise these companies to establish operations in the city, strengthening local economic activity amid ongoing national regulation of the sector.
If approved, the rate for betting platforms would fall from 5% to 2%.
According to the city’s Finance Secretary, the reduction in tax is expected to be offset by increased market participation, potentially generating BR2.8m ($730,000) in additional revenue for the municipality in 2025.
The bill also introduces updates to the city’s urban property tax rules and expanding the tax coverage to new services, but the tax incentive for online betting firms has been the proposal’s most notable point.
Good to know: Brazil’s Finance Minister has recently said online betting would be banned in the national territory, were the decision his alone
The bill is currently under review by council committees and must be approved in plenary before taking effect. No timeline has been set for the vote yet.
The local government is positioning the move as a strategic effort to capitalize on Brazil’s developing betting market.
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Tags/Keywords
- Brazil,
- LatAm,
- Legal,
- Online,
- Regulatory
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