During a recent discussion at COP30, Simone Tebet, Brazil’s Minister of Planning, unveiled her proposal to tighten the tax screws on betting companies operating within the country. Her main aim? To bridge the gap created by the current income tax exemption enjoyed by these firms. Speaking candidly to the EXAME portal, Tebet emphasized the importance of aligning the tax burden on betting platforms with that levied on public servants, highlighting what she sees as an unfair disparity. Brazil’s betting industry
“The disparity between how these companies are taxed and what public service workers pay is unjust,” she pointed out. She specifically called for a change, asserting, “Let the betting companies start paying at least what public servants pay today.” Currently, public servants are taxed at a rate of 27.5% in income tax. Tebet noted, “There are public servants who pay 27.5% in income tax. Betting companies today pay less than two digits. It’s not fair.” This stark comparison underscores her push for tax equity.
At present, legislation is underway in the Senate that aims to double the tax rate on betting sites from 12% to 24%. The bill also contemplates increases in the Social Contribution on Net Profit (CSLL) for financial institutions and fintech companies. Senator Eduardo Braga, the bill’s rapporteur, has indicated that progress depends on coordinated efforts between several agencies, including the Central Bank, Coaf, the Federal Revenue Service, Febraban, and the Federal Police. The Senate’s Economic Affairs Committee (CAE) is expected to deliberate on the matter as soon as Tuesday (18).
Tebet remains optimistic about the bill’s prospects, asserting that its approval is crucial for the government’s fiscal health in the coming years. She explained, “I believe the Senate will approve the bill, which is essential for the government to balance its budget in 2025 and 2026 and avoid a deficit of R$ 46 billion.” She expressed satisfaction with the congressional commitment to increased taxation on betting firms, adding, “Based on the commitment I’ve seen from the National Congress—and the fact that they want to tax bets more than we were proposing, I think that’s great.”
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The minister’s calculations suggest that even if the tax rates on fintechs are reduced, the additional revenue from taxing betting companies will offset that decrease. She is confident that, with the passage of this legislation, the government will enter 2026 in a strong financial position, with all expected revenues in place. Tebet emphasized that these funds will not only bolster the annual budget but will also generate ongoing fiscal benefits throughout the year.
In addition to her focus on economic matters, Tebet was in Belém recently to showcase the ministry’s environmental initiatives, including projects like the Public-Private Partnership for forest restoration and various resource allocations for environmental preservation. Brazil’s betting industry
