Congressman Carlos Zarattini presented his report on Provisional Measure 1,303 to a joint committee on 24 September, retaining a proposed increase in the betting tax rate from 12% to 18%. The rate would apply to gross gaming revenue; the committee granted a collective review, allowing more time to examine the text.
The proposed rate change would alter the tax burden on betting companies operating in Brazil.
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Senator Efraim Filho’s Amendment 14 to Brazil’s Provisional Measure 1357/2026 proposes raising income tax on net betting winnings from 15% to 20%, according to the report’s account of the amendment. The increase appears in its justification as a possible source of compensation for a proposed tax credit for textile retailers, rather than in the amendment’s operative provisions.
Brazilian Finance Minister Dario Durigan told the Chamber of Deputies’ Finance and Taxation Committee that sports betting tax measures aim to align the treatment of different types of income. He said Congress approved a 12% rate after the government proposed 18%, and put annual tax revenue from registered betting operators at about BRL9 billion.
A Brazilian Senate committee approved a bill setting an 18% gross gaming revenue tax rate. The bill is due to proceed to the Chamber of Deputies; a trade body warned that higher taxes would expand the black market.
Brazil’s Planning Minister Simone Tebet argued that betting companies should pay a tax rate of at least 27.5%, matching the income tax rate paid by public servants. A Senate bill under discussion would increase betting tax from 12% to 24%; Tebet said the revenue would help balance the government’s 2025 and 2026 budgets.
Brazil’s government has pledged to pursue higher taxes on betting companies after withdrawing a proposal to raise the GGR tax from 12% to 18%. Some lawmakers now want the rate doubled to 24%, while the IBJR argues that higher taxation could harm legal operators and says action against illegal betting could increase revenue.