The rapporteur of the project that increases the income tax exemption bracket for those who earn up to R$5,000, deputy Arthur Lira (PP-AL), said this Tuesday (12) that taxing illegal bets could open up more space in the budget for the measure.
He does not rule out increasing taxes on the sector as a way to increase revenue and offset the impact of the exemption.
Possible rate hikes and economic impact
According to Lira, representatives from the productive sector suggested stricter measures against gambling. Furthermore, they sought to avoid tax increases on the super-rich and on profits and dividends distributed by companies.
“There will be many suggestions. There will be many amendments, many proposals. We don’t have any figures on that,” the former Speaker of the House stated.
The proposals also aim to reduce gambling spending, which is seen as detrimental to various sectors of the economy. A January study by the National Confederation of Commerce of Goods, Services, and Tourism (CNC) estimated losses of R$104 billion caused by gambling in 2024. The study was contested by the gambling industry.
Irregularities and collection
Lira said he had already raised his concerns with the president of the Central Bank and the Ministry of Treasury.
“We have a concern and have already raised it with both the president of the Central Bank and the Ministry of Treasury. We have information that 50% of betting sites are operating illegally, without paying taxes.”
He continued: “If only this half paid tax or there was some rigor in these payment methods to curb these irregularities, you would already double the revenue (from this sector).”
Negotiations and deadlines
Despite the possibility, the increase in betting fees was not included in Lira’s report, approved in July by the special committee. The measure, however, is provided for in the Provisional Measure (MP) sent by the government in June, which seeks to offset losses from the partial repeal of the decree that raised the Tax on Financial Transactions (IOF).
Thus, Lira indicated that he may include excerpts from the MP in the Income Tax Bill to reduce resistance to the proposal.
“The MP has a committee in place, and a designated rapporteur. MPs aren’t easy to approve, as you all know. There are many situations.
If there is an amendment on any subject that enters the PL, in the Plenary, that is being dealt with in the MP, if it is approved, I do not see any harm”, he pointed out.
In addition to bets, the MP proposes increasing rates for fintechs, equating them to large banks in the Social Contribution on Net Income (CSLL).
If the change is included in the IR bill, Congress must approve the text by the end of September for it to take effect in 2026, respecting the ninetieth-day principle. If it is not included, the vote could take place as late as December, complying only with the annual principle.
“Since the recess, there hasn’t been a single meeting with the Speaker of the House and the leaders to inform us of the plenary’s deadline. Things only really start to move forward from then on,” Lira emphasized.
