Brazil's Finance Minister Dario Durigan has stated that the country's finances are not reliant on revenue from betting taxes. He emphasized that the aim of regulating the betting sector is not to generate additional income but to create a fair playing field across all industries. "Tax collection is part of the economic game, and all sectors contribute," Durigan explained. "The same applies to betting."
Durigan advocated for the betting sector to be regulated with the same strictness as tobacco products. In an interview with Guilherme Amado in Amado Mundo, he highlighted the government's commitment to adhering to the regulations laid out in existing laws governing sports betting. "The legislation mandated the regulation of the sector, which did not happen in the previous administration," he noted. He pointed out that upon taking office, the sector had been operating for nearly five years without formal oversight.
According to Durigan, betting has penetrated areas like football and advertising, gaining significant political and economic influence. He stated, "Understanding that Congress would not prohibit the activity, we decided to put the brakes on and establish the rules."
He clarified, "It’s not that I want to collect taxes because I need the money. I want to collect taxes for the sake of fairness: if a company sells cars, it pays taxes; if it sells drinks, it pays taxes. If it’s authorized to operate, it has to pay."
The minister also discussed recent tax reforms proposed by the Ministry of Finance, including a ban preventing beneficiaries of social welfare programs from engaging in gambling.
Durigan acknowledged President Luiz Inácio Lula da Silva's concerns regarding the financial burden of betting on citizens' quality of life. "We have been having this debate," he said, referencing discussions with Congress, the Supreme Federal Court, and the Attorney General's office about the implications of betting on Brazilian citizens.
In response to these concerns, measures have been implemented, such as raising the direct tax rate to 15% and integrating betting into the Selective Tax. Additionally, individuals benefiting from social programs and participants in the Desenrola initiative are now prohibited from betting.
He mentioned a self-exclusion mechanism that has been adopted by the government, adding, "The debate about prohibition will remain open in the country for the next few years. It will be an institutional debate between the Supreme Court, Congress, and the executive branch." Durigan stopped short of suggesting any outright ban on betting activities.
