Brazil Government Minister Under Fire to Elevate Gambling Tax Rates
The proposed legislation intends to double the gross gaming revenue (GGR) tax for betting operators, increasing it from 12% to 24%. This move is part of a broader effort by the government to boost revenue, with the bill also proposing to raise the Social Contribution on Net Profit for fintech firms from 9% to 15%. The government anticipates that these measures could generate approximately BRL 5 billion for the 2026 budget. Brazil tax rates
However, the path forward for the bill appears uncertain. Finance Minister Fernando Haddad has been cautioned by allied senators that the current political climate makes its approval challenging. During a recent meeting with Senate President Davi Alcolumbre and Senator Eduardo Braga, the bill’s main proponent, Haddad was informed that the measure faces significant opposition. Sources indicate that the senators expressed concern that there are not enough votes within the Senate’s Economic Affairs Committee to pass the legislation, especially regarding the increased taxation on fintech companies.
This gathering was described by attendees as a “clear warning” directed at Haddad, highlighting the mounting pressure from both financial and digital industry groups that have lobbied heavily against the proposed tax hikes. In response, Haddad reportedly assured those present that he would coordinate with the presidential office to “take the necessary steps” to garner support for the bill.
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Although the proposal, authored by Senator Renan Calheiros, was initially scheduled for discussion earlier this week, its debate was postponed to allow more time for evaluation. The senators involved indicated that, given the current opposition, it is unlikely the bill will be brought to a vote in the immediate future. Behind the scenes, negotiations with the Finance Ministry are ongoing as the government seeks to navigate the political landscape and secure the necessary backing for the measure’s passage. Brazil tax rates
