The Minister of Finance, Fernando Haddad, stated this Tuesday (14) that the taxation of banks, billionaires and bets “is only unfair in the minds of people who are uninformed about what is happening in Brazil”. The statement was made during a hearing at the Senate’s Economic Affairs Committee (CAE), in a debate on the project that expands the exemption from Income Tax up to R$5,000 per month, but which ended up dominated by discussions about the fall of Provisional Measure (MP) 1,303.
“The so-called taxation of Bs is only unfair in the minds of people who are uninformed about what is happening in Brazil. We are not demonizing any economic activity, but they have to make a contribution proportional to the effects they generate”, said the minister.
The minister argued that sectors with “negative externalities”, such as sports betting and online gaming, need to bear a greater tax burden, as is the case with alcohol and tobacco in other countries.
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“Nobody thinks it’s unfair to overcharge cigarettes or drinks. It’s like that all over the world. Sectors that generate dependence, such as betting, need to be treated differently”, he stated. “It’s not just any entertainment; it’s a type of entertainment that creates addiction, and it has to be treated that way.”
According to Haddad, the government has the technology to face the sector, if the clash with bookmakers continues, highlighting that these companies depend heavily on social networks to operate.
MP 1,303, which provided for the creation of the “Zero Bets Litigation” program, with regularization and taxation of retroactive gains, expired on October 8th after being removed from the Chamber’s agenda.
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Tax defeat and attempt to resume the text
During the hearing, Haddad stated that the government will try to correct what happened and look for alternatives to recover the revenue lost with the expiration of the measure.
“We are going to correct what happened. We are going to look for alternatives to what happened, because in fact the MP was very fair”, he said. “Even with regard to exempt titles, it sought to reduce the distance between what you pay in tax on a public title and on an incentivized title.”
The minister added that there are leaders in the Chamber and Senate more open to negotiation after the “dust settles”, and that President Luiz Inácio Lula da Silva should resume discussions on the issue in the coming days.
“Now that the dust has settled, I see a greater understanding of the effects of the defeat. This will have an impact on the Budget and priority areas”, he stated. “With the president’s return, we will sit down with the leaders and seek a solution for next year’s Budget.”
