Brazil’s Finance Minister, Fernando Haddad, has reaffirmed the government’s stance on taxing operators at 18%, despite recent legislative developments. During an interview on CNN Brasil, he emphasized that the administration remains committed to its original proposal, which has faced some opposition in Congress. Haddad explained, “In relation to operators, the Government’s proposal has always been 18%. We sent the bill in 2023 with this rate. Congress approved 12% and, in light of fiscal adjustment needs, we are once again requesting the 18% originally proposed. But Congress has the final say.” His comments highlight the government’s unwavering position amid ongoing negotiations. Brazil betting tax rate
The current proposal is under review by Senator Eduardo Braga, who has sought additional data from the Ministry of Finance before making a final recommendation. Haddad assured that the ministry intends to provide the necessary information to facilitate the decision-making process. The discussions are also being coordinated with Senate leaders, including Davi Alcolumbre, to ensure a smooth legislative process. Haddad noted, “I believe the Senate may vote on the text next week, but before that, a consultation with the Chamber will be carried out, as requested by Senator Alcolumbre, to prevent misunderstandings.”
This renewed push for the 18% tax rate reflects the government’s broader strategy to boost fiscal revenue without making cuts to public spending. The Ministry of Finance argues that increasing the levy would not only enhance Brazil’s regulatory framework but also ensure that licensed betting operators contribute their fair share in a rapidly expanding market. The move is seen as part of a wider effort to balance growth with fiscal responsibility.
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However, the proposal has faced criticism from some industry stakeholders who warn that raising the tax rate could harm the regulated sector. Critics contend that the higher levy might discourage investment and innovation within the industry, potentially undermining efforts to formalize and regulate betting activities. Despite these concerns, the government remains committed to its position, emphasizing the importance of a fair and sustainable fiscal policy for Brazil’s economic future. Brazil betting tax rate
