Zona de Azar Brazil – Brazil: Deputies Discuss Including Online Betting in the Selective Tax

Brazil.- June 7, 2024 www.zonadeazar.com Members of the commission in charge of examining the initial proposal to regulate the Tax Reform within the Chamber of Deputies consider the possibility of integrating virtual betting activities, also called “ bets”, to the structure of the Selective Tax (IS).

Deputies Will Assess Whether Online Betting Enters the Tax

The recent Constitutional Amendment introduced the Selective Tax, which is applied at high rates to products harmful to health and the environment, such as alcohol, soft drinks, cigarettes and combustion vehicles. The legislation under debate defines the guidelines for the application of the IS, specifying the goods and services that will be subject to this additional taxation.

The proposal to include online betting in the list of activities taxed by the Selective Tax is defended by some legislators as essential. They maintain that online gambling can have adverse consequences on people’s mental health.

Joaquim Passarinho (PL-PA), deputy

Deputy Joaquim Passarinho (PL-PA), a supporter of the proposal, highlights that debts derived from online gambling are becoming a worrying issue in Brazil. He criticizes the logic of taxing sugary drinks while online gambling remains exempt.

According to him, online games are even more problematic, as they allow debt to accumulate quickly.

Online betting can be included in the selective tax

However, there is fear, as expressed by Congressman Reginaldo Lopes (PT-MG), that a new tax on online betting could fuel the search for illegal gambling alternatives. He highlights the importance of considering the potential impacts of this policy.

In short, the debate on the inclusion of online betting in the Selective Tax is ongoing, raising critical debates on the regulation and supervision of this segment.

While some MPs see taxing online betting as a way to reduce rates of other taxes, others believe that even without taxes, betting would persist, potentially encouraging illegality.

Edited by @_fonta   www.zonadeazar.com