New taxes proposed in Brazil as part of anti-gang bill
A proposed tax on online betting platforms could finance the construction of additional prisons in the country. This initiative introduces a 15% Contribution for Intervention in the Economic Domain (CIDE) tax on betting. The government intends to funnel the revenue into a fund aimed at combating organized crime, particularly with a focus on increasing prison capacity.
Alessandro Vieira, the rapporteur for the Anti-Gang Bill in the Senate, recently held a meeting with Finance Minister Fernando Haddad and Planning Minister Simone Tebet to seek the Federal Government’s approval for the measure. Following the meeting, the congressman informed the Metrópoles news portal that the proposal has gained support among key leaders in Congress.
The projected revenue from the new CIDE tax is estimated at R$ 32 billion annually. This amount would subsequently be distributed among the security forces across municipal, state, and federal levels. Meanwhile half of the funds would finance the creation of new prison spaces. Furthermore, the proposal allocates R$ 6 billion to the Federal Police.
Alessandro Vieira said that the proposal already has significant political support behind it and has the consensus of the presidents of the Senate, and the Chamber of Deputies. According to the president of the Senate, Davi Alcolumbre the proposal could be analysed in the coming days.
The initiative comes after a least 132 people were killed in a massive police raid aimed at organized crime in Rio de Janeiro. Opposition members criticized President Luiz Inácio Lula da Silva for allegedly abandoning Rio de Janeiro in its fight against organized crime while legislators supporting the federal government placed the blame on Rio de Janeiro Governor Cláudio Castro.
