The tax liabilities and fiscal responsibilities of the Brazil Bets regime continue to be scrutinised by the Parliamentary Commission Inquiry (CPI) led by Soraya Thronicke (Podemos-MS) and Senator Dr Hiran Goncalves (PP-RR).
Following a brief pause, the commission, referred to as the ‘CPI of Bets,’ has reinitiated testimonies from key legislative stakeholders to provide feedback on the economic accountabilities of the Bets regime.
Last week, a key testimony was provided by Robinson Barreirinhas, the Special Secretary of Receita Federal, the Federal Revenue Service of Brazil, on the tax framework of Bets.
In charge of Bets tax collection, Receita Federal remains cautious in making projections of taxes accumulated by the new regime, for which the agency has appointed an expert team to monitor market movements.
Yet Barreirinhas has advocated that stricter tax requirements should be placed on Bets licences as part of an individual tax policy aimed at discouraging excessive gambling.
He argued that taxing gambling winnings would serve a deterrent function rather than a revenue-raising one. Barreirinhas criticised the current practice, stating that the exemption for losses amounts to a tax break, which he described as “madness.”
The Secretary highlighted that bettors are currently treated more favourably than companies under Brazil’s regulated system, reinforcing the “perception that gambling is a legitimate way to get rich quickly.”
In agreement with Barreirinhas, Senator Thronicke expressed shock at the low tax rate applied to gambling activities, currently set at just 12%.
Thronicke argued that gambling should be taxed at a higher rate or face a similar ‘sin tax’ applied in Brazil to harmful products such as cigarettes and alcohol – a measure proposed by the Senate tax reform project.
“The more harmful the product, the higher the tax should be,” Thronicke stated, adding that the current rate fails to reflect the social harm caused by gambling addiction.
The CPI is also set to hear testimony from lawyer Adélia de Jesus Soares, owner of Payflow Processadora de Pagamentos Ltda, who has been indicted by the Civil Police of the Federal District for ideological falsehood and criminal association.
Investigations suggest that Soares collaborated with a foreign organisation to set up an illegal gambling operation using the company Playflow as a front. It is alleged that the company facilitated irregular financial transactions, including money laundering, in violation of Central Bank of Brazil (BCB) regulations.
Her testimony is key as the CPI seeks to close all financial loopholes to prevent fraud and money laundering.
In further proceedings, the CPI will hear the lived experience of André Holanda Rodrigues Rolim, who will recount his turmoil after losing millions to gambling addiction.
Rolim, who has been diagnosed with severe ludopathy (gambling addiction), is currently undergoing treatment. His testimony will provide insight into the psychological and social toll of gambling.
Senator Hiran emphasised that gambling addiction represents a growing public health issue in Brazil, likely to worsen due to the ease of access to online platforms.
As such, the forthcoming revisions of the Bets regime must ensure that safeguards and controls are strengthened to protect vulnerable consumers from risk.
Hiran noted concerns from ministers that the Bets market had been launched without proper oversight or consideration of safer gambling protections – which are now viewed as a liability.
The commission is now considering regulatory changes, including increased taxation and stricter oversight of online gambling platforms, to mitigate the financial and mental health risks associated with the industry.
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