Deputies from the working group responsible for regulating tax reform (PLP 68/24) discuss the inclusion of sports betting in the list of products that will be surcharged by the Selective Tax.
In a meeting with the Minister of Finance, Fernando Haddad, it became clear that there is a great possibility of this inclusion. Thus, Constitutional Amendment 132 provides that the Selective Tax must target products that harm health or the environment.
Sports betting tax
Taxing sports betting appears as an alternative to offset the demands received by deputies for the inclusion of more products in the basic basket, which will have a zero rate of Tax on Goods and Services (IBS) and Contribution on Goods and Services (CBS).
States, municipalities and the federal government will charge these taxes, respectively. Animal proteins, for example, will have a 60% discount on the reference rate.
The sum of IBS and CBS will result in an estimated reference rate of 26.5%. To avoid an increase in this percentage, deputies plan to compensate for the demands met with cuts in other areas.
Hearings, political decisions and confidence in voting
According to deputy Reginaldo Lopes (PT-MG), the group is managing to meet around 70% of the demands received in hearings with society. Representative Claudio Cajado (PP-BA) highlighted that the discussion remains predominantly technical so far.
“So, there are very technical issues regarding some of these topics – cashback, basic food basket, split payment – which we are still considering from a technical point of view.”
On Wednesday (3), the College of Leaders will make political decisions. Representative Claudio Cajado stated: “We will have a meeting with the president of the Chamber and the leaders. From then on, with the publication of the report on Thursday, the text will possibly go to the Plenary next week”.
While the Minister of Institutional Relations, Alexandre Padilha, expressed confidence in the vote on tax reform regulations in the Chamber before the parliamentary recess. Intense discussions and hearings have been essential in shaping the final proposal that will be presented.
Therefore, the parliamentarians’ understanding is that the inclusion of sports betting in the Selective Tax helps to balance the tax balance, meeting society’s demands without burdening the taxpayer.