The Ministry of Sports was not among Centrão's first five options, but the group agreed to take on the portfolio given the promise that it would be boosted with the sports betting sector, which is finally being regulated in Brazil.
It was a way of overcoming the impasse with President Lula, who refused to deliver Health and Social Development, but also a kind of investment, since, according to estimates by technicians from the Ministry of Finance, sports betting generates between R$ 100 billion (US$ 20.25bn) and R$ 150 billion (US$ 30.35bn) per year, making Brazil one of the three largest markets in the world.
Under the allegation that it is necessary to do tax justice, but with an eye on improving public accounts, the Minister of Finance, Fernando Haddad, proposed a tax of 18% on the value received by bets, excluding prizes paid to bettors.
It is estimated that the Union can raise between R$ 2 billion (US$ 405m) and R$ 12 billion (US$ 2.45bn) in one year. It will depend on how many companies formalize their operations in the Brazilian market.
Industry associations say that the higher the taxation, the smaller the formalization will be. Therefore, they are demanding a reduction in the rate of 18% and also in the grant they will have to pay to operate in the country, set at R$ 30 million (US$ 6m).
During the project's progress in the Chamber, Finance technicians even showed a willingness to reduce the taxation to between 10% and 12%, but the House plenary maintained the initial percentage.
With Centrão predominating, the plenary preferred to change other points, in order to guarantee more resources to the ministries controlled by the group. In the model proposed by the Treasury, Sports would receive 3% of the revenue. Deputies approved a 4% share. André Fufuca, the new minister, thanks the initiative.
The deputies also decided to give 5% of the sum to Tourism, including Embratur, considering the new head of the ministry, Celso Sabino, another nominee by Centrão.
The project was sent to the Senate, which can maintain or change the points approved by the deputies. In this second round, diffuse interests — government, congressmen and companies — will vote to duel.
Source: Veja
