The Minister of Finance, Fernando Haddad (PT), will meet this Tuesday (14) with representatives of virtual betting companies. The meeting takes place after Haddad publicly announced his intention to collect taxes from the sector.
Earlier this month, Haddad said he wants to use the eventual revenue from gambling taxes to cover reductions in the collection of income tax (IR). “We are going to make up for the small loss of revenue with the IR table with taxation on these electronic games, which do not pay any tax and take a fortune of money from the country”, said the minister.
Haddad’s statement was given days after President Luiz Inácio Lula da Silva (PT) announced a correction to the IR table. Through it, those who earn up to R$ 2,640 per month will be exempt from tax. Today, the exemption is for those who earn up to R$ 1,908.
::Lula confirms R$2,640 tax exemption from May::
The increase in the exemption reduces the government’s collection with the IR.
The new IR table is not yet in effect. There is no official data on the loss of revenue. The National Association of Tax Auditors of the Federal Revenue of Brazil (National Unafisco) estimates an impact of BRL 108 billion in 2023.
Haddad estimates that the taxation of games and virtual bets generates from BRL 2 billion to BRL 6 billion per year in revenue.
::Tax reform report will be presented on May 16::
This type of bet has been legal in the country since 2018. Taxes are not charged on them because there is no regulation on the subject.
Gaming sites are usually hosted outside the country. There is, therefore, a difficulty in defining their taxation and functioning.
This Tuesday, Haddad meets with representatives of the National Association of Games and Lotteries (ANJL), Betano, Conta Zap and Zap Bets, BetNacional, GaleraBet, Vai de Bet and F12 Bet to discuss this matter. The meeting is scheduled for 5 pm at the ministry.
Editing: Rodrigo Durão Coelho
