Brazil’s Federal Revenue reallocates lottery tax revenue to healthcare
The Federal Revenue has established a new code to direct funds from fixed-odds betting to the Ministry of Health.
Key Points
- Brazil’s Federal Revenue created tax code for health-related betting revenue
- Funds will support prevention and treatment of gambling-related harms
- Measure reinforces the link between betting taxation and public health policy
Brazil’s Federal Revenue Service (Receita Federal) has formalized a new procedure to channel revenue from fixed-odds lotteries directly into the country’s health system.
Published on 2 September, the Executive Declaratory Act Codar No. 22 creates tax code 6524, which will now be used in federal revenue collection documents for the allocation of resources to the national Ministry of Health.
These funds are earmarked specifically for measures aimed at preventing, controlling and mitigating the social harms associated with gambling.
The measure amends a previous regulation, adding the new code in the Federal Revenue’s official table of revenue classifications.
Under this new regime, licensed operators must pay a tax on gross gaming revenue, a portion of which is directed to public health initiatives.
By creating a dedicated code, the Revenue aims to simplify monitoring and ensure greater transparency in how these resources are allocated.
Good to know: São Paulo recently launched a specialised public health programme to treat gambling addiction
Authorities have stressed that linking betting revenue to healthcare is essential given the rapid growth of the market as recent Government data indicates more than 17.7 million user accounts are already registered with betting platforms, generating billions in tax revenue.
The act, signed by Erito Lima de Oliveira, General Coordinator of Collection and Credit Rights, took effect immediately upon publication.
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