Haddad Supports Higher Taxation on Betting Sites in Brazil

Brazil.- July 10, 2025 www.zonadeazar.com Finance Minister Advocates for Increased Taxes on Online Betting Operators

In a recent interview, Brazil’s Finance Minister, Fernando Haddad, reaffirmed the federal government’s plan to increase taxes on online betting sites to strengthen revenue collection. The tax on the betting sector has been raised through a provisional measure from 12% to 18%.

Haddad, speaking to Metrópoles, attributed the current situation to the Bolsonaro administration, accusing it of granting privileges to online betting operators and treating them as “charitable institutions” exempt from tax collection.

“We have tackled the privileges of betting operators. The previous government treated them like charitable hospitals and did not collect a single cent from them for four years,” Haddad stated.

Opposition Criticizes IOF Increase and Betting Tax

Meanwhile, Senator Izalci Lucas (PL-DF), a member of the opposition, criticized the government’s increase of the Financial Operations Tax (IOF), claiming it violates Brazil’s Tax Code annuality principle. The senator highlighted cases of entrepreneurs whose financing was impacted by the sudden 300% increase in the IOF.

“The IOF is not a revenue-collection tax. You cannot implement a tax without proper planning, as the law is clear about the annuality principle in the Tax Code,” Izalci argued.

The senator emphasized that tax changes should respect a one-year notice or at least 90 days in the case of contributions, criticizing the government for imposing the increase overnight.

Congress Blocks IOF Increase, Betting Tax Under Debate

On June 25, Congress overturned the decree that raised the IOF. In response, the government issued a Provisional Measure including higher taxation on betting sites, among other measures, to compensate for fiscal deficits.

However, the betting sector and several congressional leaders have expressed strong opposition to the measure, indicating continued resistance to higher taxes on online betting operators in Brazil.

Edited by: @_fonta www.zonadeazar.com