President Lula Supports Higher Taxes on Betting
đ Brazil increases taxation on online betting sector
Brazil.- July 2, 2025. www.zonadeazar.com â President Luiz InĂĄcio Lula da Silva reaffirmed the need to increase taxation on online betting companies to finance key social programs in Brazil. During the launch of the Plano Safra 2025/26, Lula criticized the betting sector for making significant profits without fairly contributing to the country.
âď¸ Lula calls for fair taxation on betting companies
âThe cost for cattle farmers is very high compared to the profit of betting operators. These companies have almost no expenses, earn millions, and resist paying taxes. This is not fair,â stated Lula.
He connected this discussion to the income tax exemption plan for those earning up to R$ 5,000 per month, emphasizing the need to collect more from those with high profits.
đŻ Using betting tax revenues for education and social programs
The government’s proposal aims to redirect online betting tax revenues towards education and social assistance programs to benefit millions of Brazilians.
âWe are asking around 140,000 people to pay a little more in taxes to benefit 10 million Brazilians,â Lula added.
The president emphasized that the ongoing tax reform seeks to correct distortions, reducing the burden on lower-income earners while increasing it for highly profitable sectors that do not generate direct jobs.
đ° Record tax collection from the betting sector
Brazilâs Federal Revenue Service reported that in the first five months of 2025, tax collection from the online betting sector reached approximately R$ 3 billion, marking a growth of over 40,000% compared to 2024.
In May alone, over R$ 810 million was collected, reflecting a 23,096.8% increase year-over-year.
Auditor Claudemir Malaquias explained this increase results from the new fixed-odds betting tax system implemented in February.
đď¸ New regulation boosts betting tax collection
The regulation for online betting and gaming came into force on January 1, 2025. Companies must obtain licenses from the Ministry of Finance, paying around R$ 30 million for a five-year license.
Only authorized betting companies can operate, advertise, and sponsor sports clubs, with a 12% Gross Gaming Revenue (GGR) tax applied as the base for calculation.
â ď¸ Fiscal challenges and proposed 18% tax increase
The government faces fiscal challenges following the repeal of the decree that increased the IOF. It now needs to raise or save an additional R$ 20.5 billion to meet the 2025 budget goals.
In response, a provisional measure was issued to increase the betting tax rate from 12% to 18%, although the sector warns this could strengthen the illegal market.
đď¸ Edited by: @_fonta
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