After a period of negotiations with the Ministry of Finance and numerous sectors, the rapporteur on the Economic Affairs Committee (CAE) of the project that provides for the regulation and taxation of bets, senator Angelo Coronel (PSD-BA), will present an opinion that modifies points of the text approved by the Chamber.
The vote in the CAE should take place this Tuesday, 21st. Afterwards, the agenda will be analyzed in the Plenary. If this version is approved, it will have to be returned for consideration by deputies depending on the changes.
According to Valor, the rapporteur’s main suggestions, such as reducing the fee for operators and the taxation on the bettor, which will be based on the capital gain, already have approval from the Ministry of Finance.
The topic is one of the priorities for the Federal Government to increase revenue.
Reduction in taxation on bets
The senator will reduce taxation on bets, as companies in the sector are called, to 12%. The rate will apply to the companies’ gross revenue, called GGR (Gross Gaming Revenue).
It is worth noting that the text approved by the Chamber defined taxation at 18%, which displeased the market. In an interview with Valor, rapporteur Angelo Coronel explained that a higher charge could prevent Brazilian companies from operating.
“Around 90% of those who pay for media in Brazilian football are Brazilian bets. Foreigners do not pay a single dollar for advertising. It is not possible to scare away Brazilians who are here generating jobs, spending on media”, stated Coronel.
Decrease in the rate for the bettor
In addition, the report also reduces the bettor’s income tax from 30% to 15%. In the Chamber’s text, the tax is charged on the volume of bets. In the senator’s opinion, taxation will be based on capital gains.
Coronel’s doubt is whether the taxation will be on the player’s profit per month, as happens on the Stock Exchange or, or whether it will be annual, with the bets resulting in an income report so that the amount to be charged can be projected, as in income tax.
For the senator, this review is necessary to keep bettors in Brazil and prevent them from betting on illegal sites.
“We have to think about putting money into the Union. Bets are the ones who have to pay. The player is raw material. Without it there is no bet”, argued the rapporteur.
In addition to the changes to the taxation of bets, Angelo Coronel also extended the grant period from three to five years, with a maximum of three online platforms per company.
However, the value will remain the same as approved by the Chamber of Deputies, around R$30 million.
Finally, the proposal will also establish that operators in Brazil will need to have 2/3 of Brazilian employees.