The Brazilian government decided to include physical and online betting games in the selective tax category of the tax reform. Known as the “Sin Tax”, this tax aims to tax other activities considered harmful to society, such as tobacco and alcohol.
According to experts, the measure could generate significant additional revenue for Brazil, but it also raises concerns about the regulation and social impact of these activities.
The working group (GT) responsible for evaluating Complementary Bill No. 68/2024 presented, this Thursday (4), the report on the subject.
Furthermore, so-called fantasy games were also included in the new taxation. The sector harshly criticized the decision. Representatives state that these activities are not equivalent to traditional games, as they are not harmful.
They claim that fantasy games are a form of healthy entertainment and promote skills such as strategic thinking and decision-making.
The president of the Brazilian Fantasy Games Association, João Silva, commented: “We cannot treat fantasy games in the same way as games of chance. Our activity is based on skill and knowledge, not luck.”
Gambling Regulation and Revenue
The proposal to include all types of gaming and betting in the sin tax is part of a larger initiative to regulate these sectors. The expectation is that taxation will generate significant revenue, which can be used to finance social and health programs.
However, critics point out that the measure could encourage the illegal gaming market, as high taxation could drive away legal operators.
“Regulation is crucial to ensure that the gaming market operates fairly and safely. However, we need a balance to prevent excessive taxation from leading to an increase in illegal activities,” economist Maria Souza told Metropoles.
Tax reform
The regulation of the reform is the highest priority of the Chamber of Deputies and should be debated in plenary from next week, before the parliamentary recess, scheduled to begin on the 18th.
Therefore, the members of the working group spent Wednesday (3) meeting with the president of the Chamber, Arthur Lira (PP-AL), who requires consensus to put the text to a vote.
