SÁB 23 DE OCTUBRE DE 2021 - 20:06hs.
According to Senator Angelo Coronel

Gambling legalization in Brazil may be included in Income Tax reform with US$9.45 billion

The Income Tax reform may be adjusted to include the legalization of gambling, generating up to R$50 billion (US$9.45 billion) a year in revenue, according to senator Angelo Coronel (PSD-BA), the bill's rapporteur. The idea is controversial, as it would likely displease President Jair Bolsonaro's evangelical base in the 2022 elections, but Coronel says it is an effective way to raise funds to help the government offset larger cuts in corporate taxation.

“If there is loss of revenue [with the renovation], we have to find alternatives. One of them could be the gaming sector,” Coronel told Bloomberg News in an interview this Wednesday (22). He is also draftsman of a separate bill aimed at legalizing gambling.

The Income Tax reform led by Economy Minister Paulo Guedes must be approved by the end of the year to finance Bolsonaro's new social program.

The reform has faced resistance from the financial and industrial sectors, which oppose the proposal to tax dividends at 15%. The bill was approved by the House with a wide margin of votes, but support in the Senate is lower.

Senators will only support a tax on dividends if it doesn't mean double taxation for companies, Coronel said. "If we carry out a tax reform in which we are not going to reduce taxes, it is not a reform," he said.

The Senate will hold at least four public hearings with business groups to debate the proposal. On September 27, the rapporteur will meet with Guedes to discuss the project.

Coronel expects the Senate to vote on the bill by November. If there are changes, a second vote in the Chamber of Deputies will be required.

Source: Bloomberg