DOM 13 DE ABRIL DE 2025 - 15:11hs.
Pernambuco state

Mayor of Toritama proposes tax reduction for betting companies

The mayor of Toritama, Sérgio Colin, sent a bill to the City Council that proposes reducing the rate of the Tax on Services of Any Nature (ISSQN) for companies in the gambling sector. The percentage, which is currently 5%, could drop to 2% if the proposal is approved by the council members.

The text of the bill covers exclusively services whose main activity is included in the National Classification of Economic Activities Code (CNAE) No. 92.00-3/99, referring to the operation of gambling and betting. According to the justification of the municipal executive, the initiative aims to attract investments to the sector and stimulate the local economy.

Toritama is a municipality in the Brazilian state of Pernambuco, in the mesoregion of Agreste Pernambucano.

The proposal has already generated heated debates among sectors of society. Representatives of the textile industry, which is the economic base of Toritama, are demanding that the government implement policies that encourage the production of jeans, a sector that drives the local economy and generates thousands of direct and indirect jobs.

“The clothing industry is the pillar of Toritama’s economy, and the sector has faced challenges such as rising production costs and unfair competition. It would be more appropriate to discuss ways to reduce taxes for local entrepreneurs, rather than benefiting betting houses,” said a businessman in the textile industry.

Experts also warn of the risks of the proposal from a social perspective. Gambling has historically been associated with problems such as addiction, debt and psychological disorders, which raises concerns about the consequences of this measure.

“Before reducing taxes for the gambling sector, cities should invest in awareness campaigns and offer support to people who face gambling problems. Gambling addiction can lead to financial crises and serious family problems,” said a mental health and public policy expert.

Source: Bruno Muniz Blog