The president of the Interstate Consortium for Sustainable Development of the Legal Amazon and governor of Pará, Helder Barbalho (MDB), sent this Tuesday (2) to the President of the Republic, Luiz Inácio Lula da Silva (PT), a letter requesting the inclusion of benefit to the Amazon states in the Provisional Measure (PM) that will regulate sports betting. The Federal Government decided to regulate and tax the segment to increase tax collection by up to R$ 150 billion (US$ 30b).
Sports betting has been legalized in the country since 2018, but until this year it was not regulated and is not taxed either. With the regulation, the Ministry of Finance should collect from R$ 12 billion (US$ 2.4b) to R$ 15 billion (US$ 3b) per year.
If Helder's request is accepted, the governments of Acre, Amapá, Amazonas, Mato Grosso, Maranhão, Pará, Rondônia, Roraima and Tocantins will be able to receive part of this federal collection. The document sent to the Planalto Palace highlights that the Consortium's intention is to use the funds with Amazon conservation policies.
“It appears that the Provisional Measure that provides for this regulation is being prepared by the Ministry of Finance. However, taxation on income provides benefits to the National Public Security Fund, public education and sports entities. Bearing in mind that the Conservation of the Amazon acquires very expressive proportions, where the recognition of the need for exceptional treatment in relation to the states that constitute it is brilliant, also considering the importance and need to encourage economic activities that combine the development of the Amazon region to the preservation of the Forest, we strive for the benefits of the collection in question to be extended in favor of the protection of the Brazilian Amazon,” says the letter.
Last month, the government announced that it will tax companies and bettors that operate in the sports betting market in Brazil. Therefore, the taxation of the segment will be part of a Provisional Measure that should be published later this week.
With the PM, bettors must be taxed at 30% on the amounts of prizes received. There will be exemption for earnings that are within the amount of the first Income Tax-free range, updated to R$ 2,640 (US$ 526). Companies, on the other hand, must pay R$ 30 million (US$ 6m) for a five-year license, in addition to a 15% tax on profit.
The regulations must also oblige companies to have registration in the country, Brazilian employees and share capital of at least R$ 100,000 (US$ 20,000). Therefore, companies that operate the bets and those that offer the means of payment will have to be accredited by the government.
Source: GMB
