Brazil: BNDES President Proposes Higher Taxes on Online Betting Platforms

Brazil.- May 27, 2025  www.zonadeazar.com – During the Nova Indústria Brasil event, Aloizio Mercadante, president of Brazil’s BNDES (National Development Bank), proposed increasing taxes on online betting platforms and lowering the country’s Selic base interest rate.

Mercadante argued that betting platforms are “eroding popular finances”, and that taxing them more heavily could offset the effects of the Financial Operations Tax (IOF) and provide new economic alternatives for the country.

He criticized the current Selic rate, which stands at 14.75% annually — the highest level since 2006 — and stated that there is room to reduce it “gradually, safely, and sustainably.” He also pointed out that the IOF contributes to monetary contraction by making credit more expensive.

Finance Minister Fernando Haddad avoided controversial remarks during the event but later acknowledged that the high Selic rate increases credit costs. He said the government aims to normalize taxation and interest rates “as soon as possible.”

Vice President Geraldo Alckmin suggested reforming the income tax system, proposing that the top 27.5% tax rate should only apply to incomes above R$100,000. Currently, the rate is applied to earnings over R$5,830.85.

Mercadante also highlighted a global economic shift, noting that the U.S. share of global GDP fell from 20.5% to 15% between 2000 and 2023, while China’s share rose from 6.6% to 18.7%, according to IMF data.

Editó: @_fonta www.zonadeazar.com