Sports betting taxation for individuals may be reduced in Congress

Some leaders in the Chamber of Deputies intend to reduce the 30% tax on sports betting for individuals on winnings worth more than R$2,112, the maximum amount for exemption from income tax.

According to CNN, the Ministry of Finance pointed out that the definition was based on the lottery law and contacts with the betting segment.

The repport is with Deputy Adolfo Viana (PSDB-BA). The idea is to seek consensus in the House to place the project for consideration in the coming days. Viana has already communicated to party leaders that he must include online casinos in his text.

The bill enters on an urgent basis, when there is a deadline of 45 days for voting, and may halt the matter in the Chamber as early as next week.

Taxation of sports betting for individuals is the main impasse in the Chamber

CNN spoke with some deputies who pointed out that the taxation of sports betting for individuals is being the main impasse.

Parliamentarians understand that the charge is above that of countries that have regulated sports betting and could harm the formalization of the Brazilian market.

“It is necessary to create an environment in which those who formalize, host the website in the country, can compete with those who insist on informality”, said one of the deputies in an interview with CNN.

In addition, deputies consider suggesting that this taxation be carried out episodicly, such as every 90 days, and not on top of the redemption value.

While the Ministry of Finance argues that research indicates that only 25% would be taxed if the model presented by the portfolio is maintained. After all, 75% of bettors would not reach the minimum tax amount.

According to the special adviser to the Ministry’s Executive Secretariat, Francisco Manssur, the current proposal for taxation of sports betting for individuals follows the model of the lottery law.

“The first proposal was to tax all bets at 15% without exemption. When talking to operators and bettors’ associations, the proposal of 30% with exemption up to R$2,112 was considered ‘palatable’ by the sector. But we are open to dialogue with Congress”, he explained.

Viana declared that he will seek to offer a consensus report for the vote. Among most parliamentarians, however, the expectation is that the debates should last for a few days.

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