Brazil tax rise inches closer, VP warns of even higher increase
Summary
Pressure continues to grow on the licensed gambling sector in Brazil, as the increased tax could be pushed up even higher according to the country’s vice president. The government has unveiled plans for a provisional measure that will elevate the tax on operators to 18% of GGR, a 50% increase from the previous 12%. This tax hike is seen as a looming challenge for the industry, especially as illegal gambling operations account for a substantial portion of the market.
Key Points
- The tax on gambling operators in Brazil is set to rise from 12% to 18% of Gross Gaming Revenue (GGR).
- The new tax structure includes allocations for health, social security, sports, and education.
- The tax increase is part of a broader strategy to counter illegal gambling in the country.
- There is potential for the tax rate to increase even further, possibly reaching 27% according to the Vice President.
- The IBJR (Brazilian Institute of Responsible Gaming) has expressed strong opposition to the tax hike, fearing it may boost illegal operations.
Why should I read this?
If you’re involved in Brazil’s gambling industry or just curious about regulatory changes, this article is a must-read! The potential tax increases and what they mean for operators and the black market are crucial insights that could impact your understanding of the market’s future. Don’t miss out on how these developments could affect legality and profitability.