After the decision to maintain the zero deficit target in the Budget Guidelines Law (LDO – PLN 4/2023), the government is now working on approving, by the end of this year, projects that could increase revenue. Betting regulation is part of this group of matters that will be voted on until the end of the year.
This is because the government leader in the National Congress, senator Randolfe Rodrigues (Rede-AP), highlighted some issues that could increase revenue and are seen as priorities.
According to Agência Senado, Rodrigues made direct mention of the bill that regulates fixed-odd betting on sporting events, also known as bets (PL 3.626/2023).
Furthermore, the senator cited the provisional measure that authorizes the collection of Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL) on federal tax incentives granted by entities of the Federation (MP 1,185/2023).
Randolfe also cited the project that taxes income from financial investments, profits and dividends from entities controlled abroad (PL 4,173/2023).
While another project is the one that prohibits the deduction of interest on equity from the IRPJ and CSLL calculation base (PL 4,258/2023).
Tax
If these four matters are approved by the National Congress in 2023, government revenue could be boosted by almost R$70 billion next year.
“Zero deficit is the responsibility of all Powers of the Republic. Therefore, we expect the Legislature to consider some measures. If approved, there is no need to talk about changing the target”, said Randolfe, last week.
Betting regulation
The project that defines the regulation of bets, the so-called fixed-odd sports bets, was processed simultaneously at the CAE and the Sports Commission (CEsp). At CEsp, the matter was approved on the 8th.
At CAE, approval took place last Wednesday, 22nd, and the matter was sent to the Plenary with a request for urgency. According to behind-the-scenes information from the House, the agenda should be sent to the Plenary next Tuesday, the 28th.
On the initiative of the Executive, the project passed through the Chamber and was approved by the deputies last September.
Rapporteur of the matter at CEsp, Senator Romário (PL-RJ) praised the proposal. In his report, he noted that the project has “great potential to increase tax revenue, as well as organize the fixed-odd betting market, allow supervision, actions to prevent manipulation of results, guarantee consumer rights and regulate the dissemination of advertising and propaganda”.
For Angelo Coronel, PL fills a gap in Brazilian legislation
While the rapporteur of the matter at CAE, senator Angelo Coronel (PSD-BA), said that “in order for the market to function properly, it needs to be regulated”.
According to the senator, the project precisely fills this gap in Brazilian legislation and puts the country at the forefront of regulating this new economic activity.
In addition to taxing betting applications, the text provides mechanisms to inhibit the manipulation of results and establishes rules for advertising these games.
Estimates from government members published in the press indicate a potential for revenue of between R$700 million and R$2 billion next year.
