Chamber President defends decision to strip betting tax from Antifaction Bill, citing technical and enforcement concerns.
 

Key Points

Motta denies Chamber sought to protect operators

CIDE-Bets provision removed from PL Antifaction during floor vote

Motta argues new levy would be technically unworkable and fuel illegality
 

Brazil’s Chamber of Deputies President Hugo Motta has rejected claims that lawmakers sought to shield betting operators by removing the proposed CIDE-Bets tax from the PL Antifaction bill.

Motta addressed the controversial decision to strip the new levy on online betting operators from the anti-organized crime legislation after it had been inserted by the Senate.

“We in no way intended to protect the betting sector,” he assured.

“We approached the debate honestly, and the House's decision was to remove the tax that was introduced in the Senate, precisely for that reason: due to technical incompatibility, because we had already increased the tax on betting, and to avoid favoring the illegality of a sector that is beginning to legalize in the country.”

According to Motta, the Chamber considered the proposed tax technically unviable and questioned projections that it could generate BR30bn ($5.8bn) per year. 

He argued that introducing an additional levy at this stage could incentivize irregular operations in a sector that is still undergoing formal legalization.

The removal followed a separate vote triggered by an amendment introduced by Dr. Luizinho, leader of the Progressive Party.

The decision drew criticism from members of the Government’s base and from Senator Alessandro Vieira, who had included the CIDE-Bets mechanism in the Senate version of the bill.

The debate over taxation comes after Brazil has already increased levies on licensed operators, with the Finance Ministry defending even higher rates as part of fiscal policy adjustments.

 

 

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