Zona de Azar Brasil – Brazil: Bets Are Included in the New Tax Reform

Brazil.- July 15, 2024 www.zonadeazar.com As we had previously reported, the deputies of the working group responsible for regulating tax reform were discussing the inclusion of sports betting in the list of products overtaxed by the “selective tax” in the PLP 68/24.

The “selective tax” is provided for in Constitutional Amendment 132 and provides that it must be imposed on products that are harmful to health and the environment. Taxing sports betting was also seen as a type of alternative to compensate for the demands received by deputies.

Thus, on the 10th, the Chamber of Deputies approved the tax reform that established the creation of the Selective Tax. Alcoholic drinks, soft drinks, cigarettes and sports betting were included in the tax, with weapons and ammunition excluded from the charge, after being rejected from a parliamentary amendment.

The selective tax, or, sin tax, as a part of the Chamber usually calls it, is an addition to the value of goods and services that are harmful to health or the environment. The following fall under the tax:

Vehicles;
Vessels and aircraft;
Smoking products;
Alcoholic beverages;
Sugary drinks;
Extracted mineral goods;
Prediction contests (bets and lotteries, physical or virtual) and fantasy games.

Extraordinary charge has not yet measured the impact on Brazilians’ pockets

There is still no way to determine the effect of the Tax and what makes it even more impossible to understand the impact is the fact that subsequent steps should only be entered later in the process. The administration and monitoring of rates will be the responsibility of the Federal Revenue Service.

ANJL previously spoke out about the inclusion of sports betting in the Selective Tax

In an official note, ANJL stated that the “selective tax could make iGaming regulation in Brazil ineffective and encourage an illegal market”. According to the entity, the inclusion of sports betting and online gaming in the tax could promote the illegal market.

Edit: @_fonta www.zonadeazar.com