Gambling in general, from sports betting to national lotteries, will be targeted by the Selective Tax, according to the report released this Thursday (4) by the Working Group on the Regulation of Tax Reform. The text will still be analyzed by the Chamber of Deputies and President Arthur Lira intends it to be voted on next week. The reference rate expected is 26.5%.
Federal Deputy Hildo Rocha (MDB-MA) explained that the Selective Tax, also known as the "Sin Tax", is not intended to raise revenue. "It is made to tax those products that are harmful to health and the environment. We understand that gambling, as the name suggests, is harmful to health", he said.
The text is not yet final and now enters the phase of negotiations with party leaders and benches of the Chamber of Deputies. The expectation is that these negotiations will progress until next week. President Arthur Lira intends for the text to be voted on in the Plenary between Wednesday (10) and Thursday (11).
The inclusion could be even greater if the National Congress legalizes gambling, such as casinos, bingos, and jogo do bicho. The project for the legalization of this type of betting is under analysis in the Senate. The idea of the Tax Reform Working Group is that any type of gambling, whether in-person or online, be taxed with the higher tax.
The main point of the reform is the unification of five taxes currently charged in the country (ICMS, ISS, IPI, PIS, and Cofins), which will give rise to the dual Value Added Tax (IVA), with two fronts of collection (CBS federal and IBS subnational), and the Selective Tax (IS), better known as the “sin tax”.
Source: GMB
