Brazilian Deputies Members consider taxing online gambling in tax reform proposal
Friday 07 de June 2024 / 12:00
2 minutos de lectura
(Brasilia).- Members of the working group analysing the first draft of the Tax Reform regulations in the Chamber of Deputies are considering including online gambling, known as betting, among the activities on which the Selective Tax (IS) will be hit.
The tax was created with the Constitutional Amendment of the new tax system and the proposal currently being considered establishes rules for collection, such as the types of products that will pay the extra tax.
The Selective Tax provides for a higher tax rate on certain products, such as alcohol. For the parliamentarians on the WG, online gambling could be classed as an activity that is bad for mental health.
By including virtual games of chance in the Selective Tax, MPs believe it would be possible to reduce the standard VAT (Value Added Tax) rate, since part of the country's tax burden would be offset by the collection of VAT from yet another activity.
The Selective Tax, by definition, could be levied on products or services that are harmful to human health or the environment, such as soft drinks, cigarettes, alcoholic beverages and combustion-powered vehicles. The proposal has the support of other colleagues.
“I think that if it's something that harms mental health, it has to go in. The excise tax is not intended to raise revenue, so the aim would be to have another product on the list, or to lower the standard rate”, said deputy Hildo Rocha (MDB-MA).
Deputy Reginaldo Lopes (PT-MG), however, fears that yet another tax on online betting could lead to a demand for illegal games. “I think it depends, we'll have to see. This could encourage illegality,” he said.
Categoría:Legislation
Tags: Sin tags
País: Brazil
Región: South America
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