Recently, the vote on the Brazilian gambling tax bill has been postponed again, mainly due to insufficient support within Congress. This delay occurred after the cancellation of this week's Economic Affairs Committee meeting, and the bill involves increasing the gambling tax rate, with the vote possibly scheduled for next week.
The direct reason for the postponement of the vote
House Speaker Hugo Mota felt that the proposal could not garner enough votes, so he simply canceled the meeting. This is already the second postponement this month; previously, an interim measure aimed to raise the tax rate from 12% to 18%, but it was unsuccessful. The new proposal targets 24%.
Content and historical background of the bill
The new proposal not only aims to double the total gambling revenue tax rate but also stipulates that fintech companies must pay additional social contributions. In fact, CAE has already proposed 172 amendments, and the process may be prolonged. If the bill passes, it might be sent directly to the House of Representatives, unless someone requests a full Senate vote.
Political impact and future outlook
With next year's elections approaching, the Lula government is keen on increasing gambling taxes to bolster finances, but previous attempts to increase the rate by 50% failed, which was somewhat embarrassing. Analyst Lorenzo believes that doubling the tax rate is too crazy and might collapse the nascent regulated market. Negotiations are still ongoing, and the vote may be decided next week.
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