Brazil’s Congress to analyse new tax rate on online gambling
The National Congress is scheduled to establish a commission tomorrow at 14:40 to analyze the provisional measure that increases taxes on betting: MP 1.303/2025. This provisional measure also imposes a 5% income tax on financial market investments that are currently exempt — including investments related to real estate and agribusiness.
The committee will be installed tomorrow but since the parliamentary recess begins at the end of this week, work will only begin in August.
The provisional measure increases the tax burden on sports betting, raising the tax rate on betting companies’ revenues from 12% to 18% Gross Gaming Revenue (GGR). With the tax hike, the government expects that the increase in betting taxation will generate a monthly impact of around R$170 million, reaching a maximum of R$680 million.
The measure is part of a tax package designed to offset the reduction in the Financial Transactions Tax (IOF).
According to the Senate News Agency, the initiative is the second attempt by the federal government to balance public accounts after negative reactions from parliamentarians and certain productive sectors to two presidential decrees issued in May (12.466/2025 and 12.467/2025) that increased the IOF tax.
The provisional measure was published on June 11 along with a new presidential decree, 12.499/2025. By the end of the same month, the National Congress overturned all three decrees, reinstating the previous rules for the IOF.
However, the provisional measure remains in effect for the other taxes and must be analysed by the National Congress by August 23. The Supreme Federal Court (STF) also ruled in July that the Executive and Legislative branches must negotiate to reach a consensus on the matter.
The commission to be established will be mixed (composed of senators and federal deputies). So far, 679 amendments have been submitted to the text of the provisional measure — which will be reviewed after the commission is formed, its president is elected, and its rapporteur is defined.
