The plenary session of the Belo Horizonte City Council may consider, in its first vote, the bill submitted by the City Hall. The proposal reduces the tax rate for the Tax on Services of Any Nature (ISSQN) levied on virtual sports betting platforms, known as “bets,” from 5% to 2%.
During the Budget and Finance Committee session held last Friday (28), members approved the favorable opinion on Bill (PL) 503/2025.
The Executive Branch has submitted a proposal that also modifies the deadline for granting bonuses in the settlement of debts owed by sports and recreational clubs. These debts are registered as outstanding property tax (IPTU) debts.
The measure extends the benefit to debts incurred up to December 31, 2020. Currently, the benefit only applies to debts with events occurring up to 2014. To approve the text, 28 votes are needed, corresponding to two-thirds of the city council members.
How does the measure aim to attract new betting companies to the capital of Minas Gerais?
Law 8.725/2003 establishes that services related to the distribution and sale of lottery tickets and products, bingo, betting coupons, raffles, prizes, and capitalization bonds must pay 5% ISSQN (Tax on Services of Any Nature) in Belo Horizonte.
In defending Bill 503/2025, the Executive branch estimates that the projected tax revenue loss for 2025 will be approximately R$ 11,000. Despite the marginal reduction in revenue, the initiative aims to encourage new businesses to come to the city, strengthening the municipal economy.
The Chief Executive emphasizes: “The reduction of the tax rate to 2% is a strategic measure to attract betting companies to Belo Horizonte, aligning with the practices of other Brazilian municipalities in the pursuit of more competitive tax policies.”
Expansion of the benefit to include debts of sports entities.
Furthermore, Bill 503/2025 provides benefits for sports and recreational clubs that have debts with the municipality. The measure extends the time frame that limits the granting of bonuses for settling property tax debts registered as delinquent debt through participation in social, educational, or sports programs.
Thus, extending the deadline until December 31, 2020, allows for the inclusion of 95 entities, totaling R$ 15.1 million in debts. According to the Executive branch, the initiative reinforces the “Sport for All” Program, facilitates the tax regularization of clubs, and increases the availability of sports and social activities for the population.
Technical and legal analysis of the project.
Rapporteur Leonardo Ângelo noted in the committee that the bill respects the municipal authority’s competence to legislate on ISSQN (Tax on Services of Any Nature). Furthermore, the text adopts economic stimulus policies grounded in current legislation.
Expanding the use of bonuses in property tax (IPTU) does not violate tax equality. Therefore, the measure remains within the constitutional limits for granting tax benefits.
Leonardo Ângelo stated that the proposal “presents a solid legal foundation, an adequate estimate of financial impact, full compatibility with the Master Plan, the Multi-Year Plan (PPA), the Budget Guidelines Law (LDO), and the Annual Budget Law (LOA), and respects municipal tax regulations, constituting a necessary modernization of the tax system of Belo Horizonte.”
Next steps in the City Council
Council members Arruda (Republicanos), Diego Sanches (Solidariedade), and Marilda Portela (PL), who were present at the meeting along with the rapporteur, agreed with the favorable opinion. Therefore, Bill 503/2025 awaits inclusion on the agenda for initial consideration by the Plenary.
To date, no amendments have been presented to the text. Consequently, if it reaches the 28 votes required in the first vote, the bill can proceed directly to a final vote.
