The project that extended the tax exemption for the payroll until 2027 was approved by Congress and vetoed by President Lula. In a historic session, Congress overturned the veto last October. However, at the end of the year, Lula issued a Provisional Measure ending the tax reduction on the payroll, arguing that it would generate a deficit of up to R$ 30 billion (US$ 6 billion).
"We were very disappointed with the government's MP because the tax exemption we approved benefits 17 sectors of the economy, responsible for generating 9 million direct jobs," explains Vermelho.
The tug-of-war between the Government and Congress had its last chapter last week with a meeting between Rodrigo Pacheco and the Minister of Finance. Fernando Haddad said that Congress needs to find a solution to avoid this shortfall and ensure the Government's budget balance in 2024.
"The project that legalizes gambling could resolve this impasse. According to studies held by the Tourism Commission of the Chamber and the Brazil Legal Game Institute, tax revenue from the legalization of gambling could generate an estimated revenue between R$ 20 and 40 billion (US$ 4 and 8 billion). This would solve the Treasury's problem and end the impasse between the Government and Congress," believes the parliamentarian.
In addition to casinos, PL 442/91 also legalizes bingo, video bingo, online games, slot machines, animal game, and turf bets. The text was already approved in February 2022 in the Chamber of Deputies and sent for consideration by the Senate, where it received number 2234/2022. According to a survey by the Brazil Legal Game Institute, only the animal game has the potential to formalize about 450,000 jobs.
Working Group
Vermelho was part of the Working Group of the Chamber responsible for modernizing and updating the project. "We discussed extensively and approved this project. Unfortunately, it is still stuck in the Senate. President Rodrigo Pacheco needs to expedite its vote because it will be an extraordinary source of job creation and revenue for the coffers of the Union, States, and Municipalities," argues Vermelho.
"Brazil already has the animal game and some online games operating outside the law, evading taxes and leaving workers without guarantees. We have already approved the project in the Chamber, and the Senate needs to do its part to generate formal jobs, increase revenue, and invest in social issues," explains the deputy.
Casinos
Vermelho says that the legalization of casinos "can boost tourism, creating a new era of development in the country, attracting foreign tourists, improving the infrastructure of destinations, growing neighboring cities, and expanding the hotel sector."
There are about two million players who travel the world to gamble. From Brazil alone, there are about 200,000. To give you an idea, there is a large and sophisticated network of foreign casino agents in various cities in the country, with logistics and infrastructure suitable for transporting players to international casinos. Several flights depart weekly for these foreign gaming houses, with total support from representatives of famous world casinos.
"Not having a casino in our country implies leaving millions of dollars that foreign and Brazilian tourists spend when traveling abroad to gamble, while other countries have casinos as a source of high revenue and tourist attraction, Brazil insists on illegality," Vermelho concludes.
Foz will also have a casino
The project under consideration establishes that in locations classified as poles or tourist destinations, such as Foz do Iguaçu, the stronghold of Deputy Vermelho, the installation of a casino will be allowed, regardless of the population density of the state in which they are located.
The proposal defines these locations as those that have regional identity, suitable infrastructure and offer of tourist services, a large density of tourists, and the title of natural heritage of humanity, in addition to having tourism as an important economic activity.
"For cities like Foz do Iguaçu, we created the modality of tourist casinos with a large structure for games, restaurants, and an amphitheater. We will take advantage of the excellent existing hotel infrastructure, generate more jobs, and development," emphasizes Vermelho.
An integrated resort, with about 3,000 rooms, would cause very serious competition with the current hotel network. "We believe that a casino of this size would have a negative impact on the local network, with bankruptcies and layoffs," evaluates the deputy.
Source: GMB
