Congress postpones until Thursday the vote that could increase taxation on betting by 50%.

The vote on the opinion proposing an increase in the taxation of sports betting from 12% to 18% of GGR (Gross Gaming Revenue) was postponed to Thursday (2), at 10 am, by the Joint Committee of the National Congress. The report, prepared by deputy Carlos Zarattini (PT-SP), deals with new taxation rules for financial investments and virtual assets, in addition to bets. The meeting initially scheduled for Tuesday (30) was cancelled.

The new 18% tax rate on bets will be applied starting this Wednesday, October 1st, 2025, due to the ninety-day rule.

Provisional Measure 1.303, issued in June of this year, has a deadline for approval until October 8th, after which it will lose its validity if not voted on. After review by the Joint Committee, the text will proceed to a vote in the plenary sessions of the Chamber of Deputies and the Senate.

The postponement occurred after lawmakers requested a collective review last week, when the rapporteur presented his opinion on the Provisional Measure, which was drafted as an alternative to raising the Tax on Financial Operations (IOF) and to determine the taxation of investment funds, such as credit letters and real estate funds.

Although he made several modifications to the original text, Zarattini maintained Minister Fernando Haddad's proposal to increase the tax on bets by 50%. The additional 6% collected will be directed to social security, specifically for actions in the area of ​​health.

Among the main changes proposed by the rapporteur is the imposition of a 7,5% Income Tax on income from Agribusiness Credit Notes (LCAs) and Real Estate Credit Notes (LCIs). The text preserves the exemption from withholding tax on income in savings deposit accounts generated by various financial investment securities, in addition to maintaining the exemption from Income Tax on incentivized debentures.

In his report, Zarattini also expanded the taxation of investments that are currently exempt and transferred the authority to manage unemployment insurance payments to artisanal fishermen from municipalities to the Ministry of Labor and Employment.

Sports betting companies and investors in certain financial securities will be the main ones affected by the changes proposed in the Provisional Measure. The vote will take place in Brasília, in the Joint Committee of the National Congress, which is chaired by Senator Renan Calheiros (MDB-AL).

The text also includes specific rules for the taxation of virtual assets, stock market transactions, securities lending, and foreign investors.

Representatives of the betting market warn that the tax increase could have the opposite effect to that expected by the government. Since illegal operators still dominate more than half of the Brazilian market, bettors could migrate to unlicensed sites in search of more advantageous offers.

Representative Carlos Zarattini defended increasing the tax rate on the gross revenue of betting companies, classifying the measure as "fiscal and social justice."
It is not yet clear whether the Joint Committee will approve the text in its entirety or if there will be further modifications during Thursday's vote.