Brazil’s Chamber of Deputies Blocks Proposed Betting Tax Hike to 18%

With an overwhelming majority of 346 votes to 97, lawmakers approved the fast-tracking of Bill PDL 314/2025, which aims to overturn a presidential decree that sought to raise the betting operators’ tax rate from 12% to 18% of Gross Gaming Revenue (GGR).

What Happened

The bill was introduced by Congressman Zucco (PL-RS) and received broad support. It calls for a complete reversal of the decree, which proposed tax increases not only on betting operations but also on financial transactions subject to the IOF (Tax on Financial Operations).

The bill is now eligible for a direct vote on the Chamber floor, bypassing committee review. This move speeds up the process and signals strong parliamentary opposition to tax increases.

Arguments Against the Tax Hike

• Hugo Motta, Chamber chair: “The climate in the Chamber does not support tax hikes as a solution to fiscal challenges.”
• Alex Manente, deputy: “The country cannot bear a government that keeps raising taxes instead of cutting state spending.”
• Zucco, bill author: “The government is not cutting its own expenses, reducing ministries, or trimming political appointments.”

Debate Over the IOF Tax

PDL 314/2025 also seeks to suspend the presidential decree increasing the IOF tax rate. Although some adjustments were rolled back on May 22, lawmakers continue pushing for a full repeal of the new rates.

Deputies’ Views

• Marcel van Hattem (Novo): “The IOF is a regulatory, not a fiscal, tax. That’s why the Chamber should reject this decree.”
• Sóstenes Cavalcante (PL): Supported the bill “in defense of taxpayers.”
• José Guimarães (PT): “Our government is acting within the fiscal rules established in 2023.”
• Lindbergh Farias (PT): “Repealing the decree would force a budget freeze of over 12 billion reais.”
• Jandira Feghali (PCdoB): “The revised IOF only affects those earning money from money.”
• Talíria Petrone (Psol): “You’re opposing efforts to make the wealthy contribute to fiscal balance.”

Key Facts Table

What’s Next

The final vote on PDL 314/2025 is expected later this week. If approved, the betting tax will remain at 12%, and the IOF increases will be officially suspended.

This move may mark a strong stance against rising tax pressure and signal that the Chamber is prepared to actively defend taxpayers’ interests.