The National Congress has scheduled for this Thursday (9) the semi-presential session in which it will discuss 34 presidential vetoes. Among them, President Lula's partial veto (Veto 49/2023) to Law 14,790/2023, enacted on December 30, when six articles were vetoed, three of them dealing with taxation on bettors.
Since March 3rd, the Plenary cannot vote on any matter before the veto is considered.
After the presidential sanction, the Civil House sent message 749/2023 to the President of the Senate, Rodrigo Pacheco (PSD-MG), indicating the reasons for the vetoes to three paragraphs dealing with taxation on bettors and three others on commercial promotions.
Regarding the reasons given for the veto on taxation of bettors, the message stated:
"The maintenance of paragraphs 1 and 3 of article 31 of the PL would lead to a distinct taxation of Income Tax from that verified in other lottery modalities, thus resulting in a distinction of tax behavior without motivating reason for such. Moreover, the maintenance of paragraph 2 of article 31 of the PL would also go against tax isonomy, according to article 150, II, of the Federal Constitution, as it would bring a logic of Income Tax exemption contrary to the ordinary rules existing in the scope of receipt of prizes from lotteries in general, established by article 56 of Law No. 11,941, of 2008."
The paragraphs provided for the payment of Income Tax on winnings of bettors exceeding R$ 2,100 annually, computed gains and losses, meaning the net result of all bets.
In a conversation with GMB, under anonymity, some analysts affirm that the publication of Normative Instruction 2,191, which maintains the IR exemption on sports betting and online gaming up to the limit of R$ 2,259.20, could be an indication that Lula's veto will be overturned.
"The Federal Revenue would not issue a Normative Instruction exempting bettors from IR up to the limit of the 1st exemption bracket if there was no kind of Executive consent. It can be imagined that the government already admits defeat or understands the risk of leading bettors to the unregulated market," said a source to GMB.
"From the National Congress, one can expect anything, especially at a time when the government finds itself weakened in its negotiations with Parliament, but it is important to follow closely, since if the veto is upheld, the Federal Revenue will have to review the Normative Instruction published this Tuesday (7)," said another expert in sports betting and online gaming with good connections in the corridors of the Chamber of Deputies and the Senate.
For the rejection of the vetoes, an absolute majority of votes from deputies and senators is necessary, meaning 257 votes from deputies and 41 from senators, counted separately. If a lower quantity of votes for rejection is registered in one of the Houses, the veto is maintained.
As soon as the vetoes are deliberated, the corresponding parts of the project are sent for promulgation by the President of the Republic, who has 48 hours to do so. If not done within this period, it will be up to the President of the Senate to promulgate the law.
Source: GMB
