According to the National Association of Games and Lotteries, the measure would put the regulation of the sector at risk.
The incidence of the Selective Tax on sports betting and online gaming may have a reverse effect on revenue, according to the ANJL (National Association of Games and Lotteries). According to the entity, the measure would jeopardize the regulation of the sector, in addition to encouraging illegal websites. The tax is informally called the “sin tax” because it is levied on products that are harmful to health.
In note (full – PDF – 146 kB), the association that represents some of the big betting companies, such as Betnacional and Mr. Jack, states that high taxation “it would only drive away serious betting houses that wish to operate in the country in a regulated manner. International examples show that the greater the tax burden, the lower the channeling through authorized sites and, therefore, the greater the channeling through irregular sites”.
ANJL also says that the sector’s tax burden should reach 32% with the taxation of IBS (Tax on Goods and Services) and CBS (Contribution on Goods and Services) – taxes that will be created from the tax reform.
The entity refutes the justification for taxing bets with the Selective Tax because they represent an activity “harmful to society”.
“Without collecting any taxes, these companies will attract players and will not return any resources to the State that could be used precisely in actions and tools to prevent gambling addiction. It is worth noting that the law 14,790 already provides for the allocation of resources, originating from the payment of 12% on the GGR [em referência à receita bruta sobre as apostas], for the Ministry of Health, for measures to prevent, control and mitigate social damage resulting from the practice of games”he says.
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“The ANJL therefore expects common sense from both the National Congress and the Executive Branch when dealing with this issue, so that Brazil does not drive away betting houses committed to respecting and protecting the health of bettors and attract irregular ones, which will operate outside the law and the tax system itself.”he concludes.
TAXATION OF “BETS”
On Monday (July 1, 2024), deputies who are part of the GT (working group) for the regulation of the PEC (Proposed Amendment to the Constitution) of tax reform signaled that sports betting should be included in the list of services subject to the Selective Tax. The congressmen met with the Minister of Finance, Fernando Haddadin the afternoon, to discuss the topic.
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