The rules to implement the consumption part of the tax reform received an alternative version from senator Eduardo Braga (MDB-AM), rapporteur at the Justice Constitution Commission (CCJ). He presented his replacement for the project approved by the Chamber of Deputies (PLP 68/2024).
Among some of the main changes is the reduction in the tax rate for the real estate sector, an agreement reached by the Senate, the disincentive for single-use plastic through the Selective Tax (IS) and the creation of a temporary Steering Committee to coordinate the new Tax on Goods and Services (IBS, which will be state and municipal), replacing the current ICMS and ISS.
The project under analysis, among other topics, foresees the replacement of five taxes (ICMS, ISS, IPI, PIS and Cofins) by three: the Tax on Goods and Services (IBS), the Contribution on Goods and Services (CBS) and the Selective Tax, which will be levied on goods and services considered harmful to health and the environment, such as alcoholic beverages, cigarettes, drinks with a high sugar content and combustion vehicles.
The Selective Tax also includes the iGaming sector. Regulated this year, the sector was taxed at 12% on GGR and with other taxes levied on any commercial activity, it should reach a tax burden of between 35% and 40%, one of the highest in the world, causing a strong impact on the segment.
The sector's main concern, with the increase in tax burden, concerns how to develop the business. With high taxes and great difficulty in curbing illegal gambling, the fear of the regulated iGaming market is that bettors will migrate to betting houses that do not pay taxes and, therefore, will offer more advantages.
The project also provides for the incidence of selective tax on all lottery modalities, sweepstakes and turf bets, in addition to fantasy sports. According to the proposal, the basis for calculating IBS and CBS on prediction competitions is the entity's own revenue arising from this activity, corresponding to the proceeds from the collection, with the deduction of:
I - prizes paid; and
II - mandatory allocations by law to a public body or fund and to other beneficiaries.
Single paragraph. Prizes paid are not subject to IBS and CBS.
The IBS and CBS rates on prediction contests are nationally uniform and correspond to the sum of the reference rates of the federative spheres.
IBS and CBS credit to bettors in prediction contests is prohibited.
Source: GMB
