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Brazil's Gaming Association Slams Proposed Tax Hike as 'Ill-Timed'

ANJL fears higher taxes will push players to unlicensed sites. It calls for dialogue with the government to protect licensed operators and state income.

In this picture it looks like a pamphlet of a company with an image of a cup on it.
In this picture it looks like a pamphlet of a company with an image of a cup on it.

Brazil's Gaming Association Slams Proposed Tax Hike as 'Ill-Timed'

Brazil's National Association of Games and Lotteries (ANJL) has voiced its opposition to Finance Minister Fernando Haddad's proposal to increase taxes on the betting sector. The association argues that higher taxes could drive players towards unlicensed platforms and ultimately hurt state revenues.

ANJL has slammed Minister Haddad's comments as 'technically flawed and entirely ill-timed'. The association clarifies that the proposed 12% tax figure refers to the gross gaming revenue (GGR) rate after prize payouts. Operators already grapple with multiple taxes and fees, including a 25% corporate income tax, a 9% social contribution tax, inspection fees of up to 9.25%, social security contributions, and municipal service taxes ranging from 2% to 5%.

Despite these existing burdens, over 80 licensed operators have entered Brazil's market, investing BRL 30 million each for five-year licences. ANJL warns that heavier tax burdens could undermine these licensed operators and reduce total government income.

ANJL, representing Brazil's gambling industry, opposes the government's plan to raise betting taxes. It argues that higher taxes could push players towards unlicensed platforms, hurting both operators and state revenues. The association reaffirms its commitment to dialogue with the Federal Government regarding the proposed tax increase.

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