The tax was created with the Constitutional Amendment of the new tax system and the proposal in progress establishes collection rules, such as the types of products that will pay the extra fee.
The Selective Tax provides for a higher rate of charge for some products, including alcohol. For GT parliamentarians, online betting could be classified as activities that are harmful to mental health.
With the inclusion of virtual games of chance in the Selective Tax, deputies believe that it would be possible to reduce the standard rate of VAT (Value Added Tax), since part of the country's tax burden would be offset by the collection of IS in yet another activity.
“It is harmful to psychological health and your wallet. We are taxing soft drinks, extraction. Online betting debts are creating a problem in the country. What is fairer, taxing soda or gambling? It's worse than a casino, which can still generate jobs. On cell phones, it is very easy to get into debt”, said federal deputy Joaquim Passarinho, who put the topic under discussion.
The Selective Tax, by definition, may apply to products or services that are harmful to human health or the environment, such as: soft drinks, cigarettes, alcoholic beverages and combustion-powered vehicles. The proposal is supported by other colleagues.
“I think that if it is something that is bad for mental health, it has to be included. The Selective Tax has no collection purpose, so the objective would be to have some other product on the list, or to reduce the standard rate,” said deputy Hildo Rocha.
However, deputy Reginaldo Lopes fears that another tax on online betting could lead to increased demand for illegal gambling. “I think it depends, we need to see. This could encourage illegality,” he stated.
Source: O Globo
