Brazil Installs Joint Committee to Assess a Proposed Gambling Tax Hike

A provisional measure that will raise taxes in Brazil's Gambling sector has been proposed by the Brazilian Government, aimed at offsetting revenue losses from a reduction in IOF (Tax on Financial Transactions).

The revised tax regime will raise gross gaming revenue taxes from 12 to 18% and create a combined tax burden of 55%. Industry stakeholders have expressed concerned over the potential changes which could result in operators exiting the Brazilian market and potential losses of up to R$2.8 billion (US$503 million) in tax revenue.

The National Congress of Brazil have created a joint committee which will involve four public hearings throughout August to evaluate the measure. From the PM’s publication on 11 June, Congress has up to 120 days to vote on whether to make the tax hike on gambling permanent or not.