Congressman Carlos Zarattini (PT-SP), rapporteur of the Provisional Measure (MP) that proposes alternatives to the increase in the IOF (Tax on Financial Transactions) , removed from the report the provision for an increase in taxation on sportsbooks.
The initial proposal called for increasing taxation on the gambling sector, raising the rate from 12% to 18% on GGR (Gross Gaming Revenue). That is, the total revenue collected minus the amount paid out in prizes.
He maintained other measures to regularize and combat illegal operations, ensuring transparency and control.
Changes in reporting and impacts on revenue collection
Zarattini maintained the income tax (IR) exemption on LCI (Real Estate Credit Letters), LCA (Agribusiness Credit Letters), and LCD (Development Credit Letters). The government had initially proposed a 5% tax rate. The rapporteur had suggested a 7.5% rate, but reversed his decision in the final version.
These changes are expected to reduce the estimated revenue by R$3 billion. The government projected R$10.5 billion for 2025 and R$20 billion for 2026 with the provisional measure.
Furthermore, the report maintains changes to the CSLL (Social Contribution on Net Income) for financial institutions. The reduced 9% rate, which benefited fintechs, will be eliminated. These companies will now pay 15%.
The rapporteur also maintained the unified income tax rate for financial investments at 17.5%. Previously, the rate varied between 15% and 22.5%. Taxation on JCP (Interest on Equity) also remains unchanged, increasing from 15% to 20%. The rate for betting would be adjusted from 12% to 18%.
Measures to regularize and combat illegal operations
The congressman introduced the Special Regime for Regularization of Exchange and Tax Assets (RERCT Litígio Zero Bets). This regime allows taxpayers to voluntarily declare incorrectly declared or repatriated resources, assets, or fixed-odds betting rights.
Furthermore, the rapporteur proposed measures against illegal gambling.
Next steps and voting on the MP
On Monday (6), government leaders, parliamentarians and the president of the Chamber, Hugo Motta (Republicanos-PB), met with the Minister of Treasury, Fernando Haddad, and party leaders such as Gilberto Abramo (Republicanos) and Pedro Lucas (União Brasil).
The leaders of the joint committee had scheduled the vote on the provisional measure for 9:30 am, but canceled the meeting. The rapporteur will meet with senators before the session reopens, scheduled for 3:30 pm. The first meeting will be with the government leader in Congress, Senator Randolfe Rodrigues (Workers’ Party-AP).
Finally, the MP needs to be approved by the joint committee and then by the plenary sessions of the Chamber and Senate, by Wednesday (8), to remain valid.
