Brazil: Deputies approve urgent status for bill raising betting tax to up to 25 percent

The Finance and Taxation Committee of Brazil’s Chamber of Deputies approved on Wednesday the urgent status of a bill that would raise taxes on online betting operators, advancing a key measure in the government’s efforts to boost revenue after the recent rejection of a provisional tax proposal.

Two separate bills are under discussion, one increasing the levy on gross gaming revenue (GGR) from 12 percent to 24 percent and another proposing a 25 percent rate. With the urgency motion approved, the proposal can be taken directly to the Chamber’s plenary for a vote, on a date yet to be determined.

“We are requesting this, and I believe it will convince President Hugo Motta to bring the matter to the floor, along with other related bills. We’ve gathered signatures from 34 deputies across all parties, which shows the strength of this debate taking place here,” said Rogério Correia, President of the Finance and Taxation Committee, as reported by Games Magazine Brasil.

Lawmakers aligned with the government, including Workers’ Party (PT) deputy Lindbergh Farias, have backed the increase. Farias, who authored one of the bills, argued that Brazil’s current 12 percent rate leaves significant room for adjustment.

“We know the impact is enormous. Everyone has someone in their family struggling with addiction. I have here a chart showing tax rates around the world — France has 33%, Italy has 20%, and here in Brazil, we’re at 12%. There’s room to go much higher,” he said.

Supporters of the tax hike say it would help offset losses from the failed provisional measure that sought an 18 percent direct tax on the betting industry. However, including existing general taxes, the total burden on betting operators already approaches 40% of net revenue.

The government and its allies see the higher rate as a key step toward strengthening fiscal accounts while addressing social concerns linked to online gambling.