Lula renews push to increase betting and fintech taxes after MP 1,303 expires
Brazil Government reintroduces proposal to raise betting tax to 24%, linking higher rates to social responsibility and fiscal balance.
Key Points
- Lula’s Government prepares new proposal after the expiry of MP 1,303
- PT leader Lindbergh Farias submits bill to double betting tax to 24%
- Measure seeks both fiscal recovery and stronger social safeguards
Following the expiry of Provisional Measure 1,303, President Luiz Inácio Lula da Silva is moving to revive the Government’s plan to raise taxes on betting and fintech companies as part of a fiscal and social strategy.
The proposal to increase the betting tax rate from 12% to up to 24% is being framed as a step toward fairer contributions from high-revenue sectors and stronger funding for public services.
The initiative aligns with the administration’s view that industries generating significant profits should share greater responsibility in addressing social challenges.
Lindbergh Farias, leader of President Lula’s Workers’ Party (PT) in the Chamber of Deputies, has formally introduced a new bill to raise the betting tax to 24%, directing additional revenue to Brazil’s social security system.
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“This measure is important, as Brazil already has more than 2 million people addicted to gambling, and cases of pathological gambling reported in the public health network increased by 300% between 2022 and 2024,” Farias stated.
While the proposal faces expected resistance in Congress, government sources emphasise that the goal is to ensure a more balanced tax framework without discouraging innovation or growth in the regulated betting sector.
Finance Minister Fernando Haddad is expected to evaluate the plan alongside other fiscal measures designed to offset the BR30bn ($5bn) shortfall resulting from MP 1,303’s expiry.
Tags/Keywords
- Brazil,
- LatAm,
- Legal,
- Online,
- Regulatory
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