The much-anticipated public hearing between Brazil’s Minister of Finance, Fernando Haddad, and the mixed commission of Congress reviewing Provisional Measure (MP) 1303/2025 was unexpectedly cancelled at the last minute on Wednesday (August 6th). The meeting was intended to initiate formal discussions on the controversial proposal aimed at increasing the direct tax burden on Gross Gaming Revenue (GGR) from 12% to 18%.
MP 1303/2025 was enacted as a way to compensate for the revocation of President Luiz Inácio Lula da Silva’s decree that raised the Tax on Financial Transactions (IOF). According to the Ministry of Finance, the proposal aims to “correct distortions, establish tax equality, and maintain Brazil’s fiscal balance.” The measure was set to expire on August 9 but the increased taxes have been extended until October. The extension is automatic since the MP is still under analysis by the National Congress. The mixed commission responsible for analysing the provisional measure was installed in July.
Haddad has become increasingly outspoken against the online gambling sector. In an interview with ICL Notícias last month he stated that if it depended solely on him, online betting would be prohibited in Brazil. “If a project appeared in the Federal Chamber [to decide whether to continue or to stop], I would hit the stop button. There’s no revenue that justifies this mess we’ve gotten into,” he said
He also noted that the Ministry of Finance is currently collaborating with the Central Bank to share information about fintechs that are allegedly acting as channels for illegal betting, money laundering, and organized crime. He said that the data gathered over the last six months would be presented to President Luiz Inácio Lula da Silva.
During the interview, Haddad referring to the period before online gambling was regulated, stated that over R$ 40 billion was transferred out of the country in four years without tax collection or control over the sector. “That money has disappeared from Brazil,” he said.
The post Hearing over new tax rate in Brazil cancelled as Finance Minister becomes increasingly critical of online gambling appeared first on G3 Newswire.
The much-anticipated public hearing between Brazil’s Minister of Finance, Fernando Haddad, and the mixed commission of Congress reviewing Provisional Measure (MP) 1303/2025 was unexpectedly cancelled at the last minute on Wednesday (August 6th). The meeting was intended to initiate formal discussions on the controversial proposal aimed at increasing the direct tax burden on Gross Gaming…
The post Hearing over new tax rate in Brazil cancelled as Finance Minister becomes increasingly critical of online gambling appeared first on G3 Newswire.