A manifesto from the National Industry Forum (FNI), an advisory body of the National Confederation of Industry (CNI) has suggested the creation of a selective tax on betting.
The document titled “For the Taxation of Bets” proposes applying a 15% tax on the amount wagered at the time of online betting, similar to the taxation on cigarettes and alcoholic beverages. The intention is for the funds raised to finance initiatives in health and education. The tax would be called CIDE-Bets, and would balance the taxation between online betting and other economic sectors. The measure would be temporary and would be in effect until 2027, when it would be replaced by the selective tax provided for in the tax reform currently under consideration by lawmakers.
“Our goal is to ensure balance and tax fairness for those investing in Brazil’s future. While the productive sector faces a high tax burden, the digital betting market, which is growing rapidly, pays much less in taxes and continues to drain resources from the real economy,” said CNI President Ricardo Alban. If approved this year, CIDE-Bets has the potential to generate R$ 8.5 billion in revenue by 2026 the organisation stated.
The FNI argues that the manufacturing industry faces one of the highest tax burdens in the country, reaching 46.2% for the manufacturing sector, compared to the national average of 25.2%. In contrast, betting operations are taxed like any other company, subject to Corporate Income Tax (IRPJ), Social Contribution on Net Profit (CSLL), Social Integration Tax (PIS/Cofins), and Service Tax (ISS).
According to the manifesto the only difference is the 12% tax on the revenue from wagers excluding winnings paid out. The winnings of bettors are taxed at 15%, a lower rate compared to capital gains and financial investments, which range from 15% to 22.5%, revealing more lenient tax treatment for the betting sector.
The organisation argues that the measure, by increasing the immediate cost of betting would also discourage addiction and could reduce the total volume of bets, decreasing from over R$ 70 billion to R$ 56.6 billion per year.
The post National Industry Forum proposes 15% Selective Tax on online betting in Brazil appeared first on G3 Newswire.
A manifesto from the National Industry Forum (FNI), an advisory body of the National Confederation of Industry (CNI) has suggested the creation of a selective tax on betting. The document titled “For the Taxation of Bets” proposes applying a 15% tax on the amount wagered at the time of online betting, similar to the taxation on…
The post National Industry Forum proposes 15% Selective Tax on online betting in Brazil appeared first on G3 Newswire.