Senator Eduardo Braga (MDB-AM) presented the new version of his report, in which he maintains the charge of the Selective Tax on sports betting, online games, and fantasy sports. There is still no stipulated percentage for taxation. The bill that establishes the charge in various sectors of the economy and exempts others will go to vote this Wednesday (11).
The rules for implementing the part of the tax reform on consumption received an alternative version from Senator Eduardo Braga (MDB-AM), rapporteur in the Constitution and Justice Committee (CCJ). He presented his substitute to the project approved by the Chamber of Deputies (PLP 68/2024).
Among some of the main changes is the reduction of the rate for the real estate sector, an agreement that was made with the Senate, the discouragement of single-use plastic through the Selective Tax (IS) and the creation of a temporary Management Committee to coordinate the new Tax on Goods and Services (IBS, which will be state and municipal), replacing the current ICMS and ISS.
The project under review, among other topics, foresees the replacement of five taxes (ICMS, ISS, IPI, PIS, and Cofins) by three: the Tax on Goods and Services (IBS), the Contribution on Goods and Services (CBS) and the Selective Tax, which will apply to goods and services considered harmful to health and the environment such as alcoholic beverages, cigarettes, high-sugar drinks, and combustion vehicles.
The Selective Tax also includes the iGaming sector. Regulated this year, the sector was taxed at 12% on the GGR and with the other taxes incident on any commercial activity, it should reach a tax burden between 35% and 40%, one of the highest in the world, causing a strong impact on the segment.
The main concern of the sector, with the increase in the tax burden, concerns channeling. With high taxes and great difficulty in curbing illegal gambling, the fear of the regulated iGaming market is that bettors will migrate to betting houses that do not pay taxes and, therefore, will offer more advantages.
The project also provides for the incidence of the Selective Tax on all lottery modalities, sweepstakes, and turf betting, in addition to fantasy sports. According to the proposal, the calculation base of the IBS and CBS on prediction contests is the entity's own revenue from this activity, corresponding to the product of the collection, with the deduction of:
I - paid prizes; and
II - mandatory allocations by law to a public body or fund and other beneficiaries.
Sole paragraph. The prizes paid are not subject to the incidence of IBS and CBS.
The rates of IBS and CBS on prediction contests are uniformly national and correspond to the sum of the reference rates of the federative spheres.
The credit of IBS and CBS to the bettors of the prediction contests is prohibited.
Source: GMB
