Ana Helena Pamplona, a specialist in Tax Law and advisor to the entity, explained in the Senate hearing the effects that the high tax could generate throughout Brazil.
Brazil.- The National Association of Games and Lotteries (ANJL) warned during a public hearing of the Federal Senate regarding the Selective Tax, about the detrimental consequences for society as a whole if Brazil establishes an excessive and inefficient taxation for online gaming. In her participation, the professor of Tax Law and consultant for the ANJL, Ana Helena Pamplona, emphasized that a possible increase in the tax burden, which is already one of the highest in the world, will lead gamblers to illegal sites, stimulating socioeconomic problems derived from irresponsible gambling.
“What is the big problem? If excessive taxation is implemented, what we want to combat, which are health problems, to prevent people who develop some type of illness from participating, will end up being stimulated outside the legal market and out of the eyes of the State. And then it will be much worse,” stated Pamplona.
In her presentation, the tax expert showed examples from around the world of players who migrate to illegal sites in countries with a high tax burden. She mentioned that while the United Kingdom taxes bets at around 15 percent and has a channeling rate of 90 percent to regulated sites, France imposes a charge of around 45 percent and only manages to channel half of the players to the legal market.
“We use these countries as a reference in terms of total tax burden. It is necessary to remember that the sector already has an additional 12 percent, provided for in specific legislation,” said Pamplona, referring to the GGR (Gross Gaming Revenue), which betting houses must pay and which is set by Law 14.790/2023. “Pursuing the sector further could harm it. The success of the tax regime means success in regulation,” she added.
See also: Online betting in Brazil: the ANJL refutes the Central Bank's figures
