The regulation of the sports betting sector is an issue that has been gaining ground in the current government. However, a regulatory issue is keeping the current Minister of Finance, Fernando Haddad, up at night, since at the moment it is not possible to correctly stipulate how much it would be possible to raise with the taxation of sports betting.
The taxation of the sector has been debated by several political figures and the iGaming industry, in order to guarantee the functionality of the segment in a safe way and without major obstacles.
An article was recently published in Guilherme Amado’s column, on the Metrópoles portal, describing the minister’s current difficulty and the next steps to be taken to tax sports betting.
Check out the news about the taxation of sports betting in full
The Minister of Finance, Fernando Haddad, is racking his brains to find out how much he will be able to raise with the taxation of sports betting. Without a feasible margin, Haddad is unable to stipulate the rates that will be applied to companies and players.
People familiar with the matter at the Planalto Palace comment that Haddad worked with an inflated revenue estimate that was far from the Brazilian reality. Haddad said, in an interview with UOL, that the taxation of sports betting would offset the government’s losses with the correction of the Income Tax table.
The increase in the income tax exemption range should cause losses of BRL 3.2 billion this year, and estimates indicate that the government will no longer collect BRL 6 billion from 2024 onwards. levels.
The Treasury has already defined that taxation will be applied on the gross profit of companies. The players would have their earnings taxed in the Income Tax, but the ministry has not decided what the exemption range will be nor the percentage that will be charged on the prizes.
Haddad stated that the taxation will be applied through a provisional measure (MP). According to the minister, the text will be presented after Lula’s trip to China. The president will be in the Asian country between the 26th and 30th of this month.