Haddad Supports Raising GGR Tax to 18%
Brazil – June 18, 2025 www.zonadeazar.com Fernando Haddad, Minister of Finance, voiced his support this Saturday, the 14th, for Provisional Measure No. 1303/2025, aimed at offsetting the exemption of the Tax on Financial Operations (IOF). The measure was published on Wednesday, the 11th, after being chosen by lawmakers as an alternative to the previously rejected decree proposing an IOF increase. Among the approved measures is the increase of the gross gaming revenue (GGR) tax on online betting from 12% to 18%.
Haddad spoke on social media, highlighting the Lula government’s stance on taxing specific sectors of the economy: “We are exempting people who earn up to R$ 5,000, but we must correct distortions in public accounts,” said the Finance Minister.
He also took the opportunity to criticize the Bolsonaro administration, which failed to regulate the betting sector during its four years in office: “How can a government that claims to support families give up R$ 40 billion in gambling taxes?”
According to UOL, on Friday the 13th, Haddad attended a dinner hosted by the Prerrogativas Group, where he was asked whether the taxes paid by betting companies offset the costs incurred by the Unified Health System (SUS) in treating gambling addicts. According to UOL, Haddad said no, and added that if it were up to him, there would be no sports betting or online gaming in Brazil.
Haddad Ignored Urgent Meeting Request from Betting Sector
As reported by Estadão, Haddad also ignored an “urgent meeting” request from representatives of the sports betting sector, sent nine days before the government published the MP increasing taxation.
In the document sent to Haddad, the associations expressed “deep concerns” about raising the tax rate from 12% to 18%. The meeting request was signed by: the Brazilian Association of Games and Lotteries (AbraJogo), the Association of Bets and Fantasy Sports (ABFS), the International Gaming Association (AIGaming), the National Association of Games and Lotteries (ANJL), the Brazilian Institute for Responsible Gaming (IBJR), and the Legal Gaming Institute (IJL).
According to the letter, the tax hike “may have severely adverse consequences, potentially strangling legal operations and, paradoxically, strengthening the illegal market that operates outside the scope of legislation and state oversight.”
The associations have noticed increasing distance from Haddad, who, beyond backing the measure, also criticized the sector last Thursday: “They don’t generate jobs. Personally, I don’t like gambling. It’s something Congress should reconsider.”
Sports betting has become a central piece in the negotiation package to offset the IOF increase, raising concerns among operators about the tax hike’s impact. The Brazilian Institute for Responsible Gaming (IBJR) issued a statement last week expressing its “vehement indignation” over the tax increase introduced by the MP.
Edited by: @_fonta www.zonadeazar.com