New Proposal in Brazil Calls for 16% Tax for Online Betting

Earlier this month, in Brazil, a proposal called for a 15% tax on sports betting along with BRL30 million BRL30 million ($5.9 million) license fee. Now, local media outlets reported a proposal was pushed forward that calls for a tax rate from 15% to 16%. The new proposal, reportedly backed by Ana Moser, the country’s

Earlier this month, in Brazil, a proposal called for a 15% tax on sports betting along with BRL30 million BRL30 million ($5.9 million) license fee. Now, local media outlets reported a proposal was pushed forward that calls for a tax rate from 15% to 16%. The new proposal, reportedly backed by Ana Moser, the country’s Minister of Sports, calls for a 16% tax rate on online sports betting gross gaming revenue (GGR). This marks an increase of 1% in the tax rate when compared to the previously introduced proposal.

A breakdown of the proposed 16% tax rate reveals that the lion’s share, or 10%, would be allocated to social security. Another 2.55% would be directed to the National Public Security Fund, while sports clubs will benefit from 1.63% of the taxes.

Additionally, Brazil’s Ministry of Sports will keep 1% of the sports betting tax revenue. The Ministry would also be in charge of the allocation of the funds under the new proposal. The remaining 0.82% out of the 16% sports betting tax would help school initiatives.

The Country Is Expected to Benefit from Billions in Tax Revenue

Early estimations showed that the country’s coffers are expected to receive a significant boost from the sports betting tax revenue. Recently, the country’s Minister of Finance, Fernando Haddad, predicted that sports betting revenue can bring between BRL12 billion ($2.37 billion) and BRL15 billion ($2.96 billion) under the proposed 15% tax rate on betting GGR.

In the United States, where legal sports betting is widely spread, the tax rate for the activity varies from one state to another and this is primarily because of the legal framework that is established in the country. In 2018, after the Supreme Court struck down PASPA, lawmakers in each state were tasked with the legalization and regulation of sports betting. As a result, some states legalized only retail betting, while others went on to introduce mobile and retail sports wagering options. Not unexpectedly, in different US states, the tax rate varies and the rate itself can differ for mobile and sports betting activities.

Focusing once again on Brazil, the recent tax proposal needs to be reviewed before it gains further traction.  It is likely that the newly proposed tax rate will be up for discussion next week, but when it will be implemented or whether it will undergo further changes, it remains to be confirmed.

Recent News
Online Casino
BitStarz Casino

BitStarz Casino: Deposit $50 and Play with $100 + 180 Free Spins

Rabona

Rabona: Get 100% bonus up to $500 + 200 bonus spins

Bet O Bet Casino & Betting

Bet O Bet: 100% match bonus up to $2,500 first deposit bonus

1xBet

Welcome bonus up to $1,500 for new players + 150 Spins

888 Casino

888 Casino: Get  $500 Bonus + $10 Free Bet on 888Sport

error: Content is protected !!