The Minister of Finance, Fernando Haddad, reinforces the intention to tax bets on electronic games| Photo: Washington Costa/Ascom/MF

Finance Minister Fernando Haddad informed this Tuesday (14th) that the federal government will present a provisional measure to tax the market for electronic betting on sports games. The proposal should be presented after President Lula’s trip to China scheduled for the end of March.

The government intends to start taxation, considering that the electronic game betting market is expanding in the country and they do not pay federal taxes. Estimates of the measure’s revenue potential, according to the economic team, vary between R$ 2 billion and R$ 6 billion per year.

“We are going to compensate for the small loss of collection with the IR table with taxation on these electronic games that do not pay any tax and take a fortune of money from the country. Gambling in the whole world is taxed and in Brazil it is not”, said the minister .

Haddad will meet, later this Monday afternoon, with executives from companies that operate in the sector, as well as lottery administrators, to reach a consensus on the proposal. According to the minister, the taxation will be of the contribution type and will be subject to the rule of ninety, that is, it should enter into force 90 days after the publication of the MP.