"It's a demand from some deputies and we are evaluating whether it makes sense or not. Again, it's the same issue that arises in the case of cigarettes. Yes, you have to tax it, it's bad for your health, everyone knows. But if you getting your hand wrong, you encourage a lot of smuggling (illegal gambling)," said the extraordinary secretary of the Ministry of Finance for tax reform, Bernard Appy.
“So, the question is knowing how and if this taxation makes sense and calibrating it appropriately. We are doing it together with the Betting Secretariat at the Ministry (of Finance)."
The secretary added that there is still no position defined by the Ministry of Finance. "But, at the request of parliamentarians, we are making this assessment (of taxing with the selective tax)," he declared to g1 and TV Globo.
According to the constitutional amendment, approved at the end of 2023, the selective tax will apply to the production, extraction, commercialization or import of goods or services that are harmful to health or the environment.
In the text regulations, it will be detailed what may or may not be subject to the sin tax and the tax rates. So far, the government and states have proposed the incidence on cigarettes, alcoholic drinks, sugary drinks, cars and oil.
In the case of addiction, gambling could be classified as harmful to health. According to an estimate by the World Health Organization (WHO), in 2016 the annual global loss of gamblers was estimated at US$400 billion.
Addiction can lead to mental health, cognition and relationship problems, as well as leading to bankruptcy and crime.
In 2021, the UK Gambling Commission estimated the prevalence of compulsive gambling disorder to be 0.4% of the population.
Source: O Globo
