Brazil's gambling market has had a solid start this year, accumulating about 79.5 billion Brazilian reais in tax revenue by October. However, there was a decline in revenue in October alone, collecting 10.9 billion reais, a 9.4% decrease from September, at a time when the government is pushing a proposal that could potentially double the tax rate, sparking industry concern.
Monthly tax revenue declines, but annual total remains significant
October's gambling tax revenue in Brazil was 10.9 billion reais, about a tenth lower than September's 12.1 billion reais. Despite the monthly performance setback, since the start of the regulated market at the beginning of the year, the total tax revenue has approached 80 billion reais—a significant figure, with related international gambling financial data continuously tracked on the PASA official website.
Proposal to double tax rate faces critical vote
Currently, Brazil's total gambling tax rate exceeds 40%, and the Senate is expected to vote this Wednesday on a bill that would raise the GGR tax rate from 12% to 24%. If passed, the proposal will be sent to the House of Representatives, although it is reported that even the Speaker of the House believes the proposal may lack sufficient support. Honestly, if the tax rate were to double, it would put considerable pressure on operators.
Political factors behind the push for tax increases
Why is the government insistent on raising taxes? Analysts point out that this is closely related to next year's elections and fiscal targets. A previous government proposal for a temporary 50% tax increase was not passed, seen as a major setback. Local experts believe that the government is pushing for tax increases with a more urgent stance, partly to compensate for fiscal needs and partly because "taxing gambling giants" is a popular topic among conservative voters. However, he also warns that the decision to double the tax rate is "somewhat crazy" and could jeopardize the development of the regulated market.
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This article is from "PASA-Global iGaming Leader" gambling news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
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