The National Congress overturned a veto by President Luiz Inácio Lula da Silva (PT) during this Thursday’s session (9) and decided to return the Income Tax (IR) exemption for bettors who win up to R$ 2,259 in monthly prizes .
The presidential veto ensured the collection of tax for anyone who pocketed any amount in online bookmakers.
The veto had been recommended by the Ministry of Finance. In the justification sent to Congress, the government stated that maintaining this section would violate “tax equality”.
With the veto, bettors would be taxed at a rate of 15%, regardless of the amount of the prizes.
However, parliamentarians understood that it was interesting to exempt Brazilian bettors who obtain lower values – and who fall into the first income tax exemption bracket; that is, they receive up to R$2,259.
Vote to overturn the veto
In the Chamber of Deputies, 417 parliamentarians took a stand for the overthrow and 64 for the continuation of Lula’s veto. While in the Senate, the result was 64 to 8, and the rejection of the veto also persisted.
Regulation of sports betting and online gaming
It is worth remembering that the law that regulates and taxes the online betting market was approved in Congress at the end of last year. Therefore, the Ministry of Finance needs additional revenue to reach the fiscal target.
For an online betting company to operate in the country, it will need to pay R$30 million to obtain a license. However, only groups formed in accordance with current legislation, with headquarters and administration in the country, may explore the activity.
Distribution of resources
According to the norm, the distribution of resources obtained by the Government will occur as follows:
- 36% to the Ministry of Sports;
- 28% for Tourism;
- 13.6% for Public security;
- 10% to the Ministry of Education;
- 10% for social security;
- 1% for health
- 0.5% for civil society entities
- 0.5% to the Fund for the Equipment and Operationalization of Core Activities of the Federal Police (Funapol);
- 0.4% for the Brazilian Industrial Development Agency.
