Brazil’s Finance Minister Defends Tax Reform and Sports Betting Taxation

Brazil’s Finance Minister, Dario Durigan, responded to criticism that the government is pursuing an overzealous revenue-generation policy, claiming that recent tax measures aimed to redress some long-standing disparities within the national taxation system.

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In his statement to the Finance and Taxation Committee of the Chamber of Deputies, Durigan said that the proposals of the government on taxing the operators of sports betting, offshore investments, tax havens, and exclusive investment funds are meant to introduce equal tax treatment for all kinds of income.

“The point is not to impose additional taxes in general. Rather, this is about ensuring that the rich will pay under the same criteria as the workers and traditional investors,” he said.

Taxation of Sports Betting, Offshore Investments, and Closed-end Investment Funds

First, Durigan noted that operators of sports betting businesses in Brazil had never been taxed prior to 2022, even though this kind of business had been legal for several years. Comparing the approach of his government with previous administrations, the minister said, “From 2018, when the Temer administration legally legalized sports betting operations in the country, until 2022, betting companies enjoyed tax immunity. All of Bolsonaro’s time, betting operators paid zero. Then the Lula administration suggested 18% tax rate, and Congress approved 12%. Excessive revenue collection by betting companies? I do not see it that way.”

In the words of Durigan, the taxation of the above-named entities is aimed at ensuring tax justice. “I do not think this is a revenue measure. This is an equality measure“, he added. Moreover, the minister stressed that the Ministry of Finance still makes sure that illegal betting websites and all crimes connected with unlicensed financial operations are punished.

Transparency and Economic Indicators

Durigan noted that the annual tax revenue from legally registered betting operators stands at around BRL 9 billion. Also, he said that the Ministry of Finance would publish more than 25 thousand documents on completion of the betting licenses authorization process.

“I am committed to transparency in this area“, Durigan said, referring to the government’s attempts to make information about the licensed betting market accessible to the public.

During his appearance in front of the Committee, the minister presented some overall economic indicators in order to justify government policies. Durigan said that in 2026, Brazil had about 5.1 million job creations.

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In addition, the inflation remained under control, although it needs to be carefully watched. The minister attributed Brazil’s economic performance to economic growth, institutional predictability, and market access.

Fiscal Policy and Public Spending

Furthermore, Durigan defended the government’s fiscal policy. He noted that public spending had decreased by BRL 23 billion in an electoral year. He said this measure demonstrated that the government’s budget discipline was preserved without a reduction of public goods.

The minister pointed to the Desenrola program for the debt restructuring of families and businesses in order to get access to lending again. “That is the value that we need to defend in the country: rewarding those who pay,” he said.

Priorities of the Ministry of Finance

Durigan mentioned several priorities of the Ministry of Finance. The minister said that the ministry would concentrate on the fight against illegal betting websites and on the monitoring of money transactions connected with organized crime. Also, he noted that the Ministry was going to explore financing opportunities abroad.

Also, the minister stressed that the government invested in social programs and education, aiming to reduce the burden of taxation on the low-income population and correct the distortions in the taxation of the high-income population.

“The guiding principle was always the following: reducing taxation of consumption and poorer citizens while increasing taxes fairly for those that would correct distortions of economically powerful citizens who, in our opinion, were not paying enough“, Durigan concluded.

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Source: BNL Data