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Brazil’s ongoing debate over gambling taxation has hit another roadblock. Lawmakers have postponed a vote on a proposed increase in the country’s gambling tax rate from 12 percent to 24 percent, citing insufficient political backing. The delay marks the third setback this month, leaving operators navigating an increasingly uncertain regulatory landscape.
The Economic Affairs Committee (CAE) canceled the scheduled vote after Chamber of Deputies President Hugo Motta informed Senate leader Davi Alcolumbre that the proposal lacked the necessary support. CAE President Renan Calheiros stepped in to halt the meeting, avoiding a potentially public defeat.
The bill includes more than 172 amendments, reflecting the challenges of reaching consensus. In addition to the gambling tax hike, it proposes higher social contributions on fintechs and financial institutions, adding pressure on lawmakers balancing fiscal goals and industry pushback.
President Lula’s administration continues to prioritize higher tax revenues to meet budget targets, despite earlier failed attempts. Industry experts warn that doubling the tax rate could destabilize Brazil’s newly regulated gambling market, which only opened on 1 January 2025, and may favor offshore operators who are not subject to domestic taxation.
Operators now face weeks of uncertainty as political negotiations continue. The outcome will determine whether Brazil proceeds with a significant tax increase or scales back the proposal to maintain market stability ahead of the 2026 election.
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