After the failure of the 18 per cent lottery tax proposal in Brazil, it is proposed to double the lottery tax from 12 per cent to 24 per cent.

The leader of the Brazilian House of Representatives Labour Party, Limberg Faryas, recently submitted a new bill proposing to raise the country ‘ s lottery tax to 24 per cent of total income. This bill, No. PL 5,076/2025, was submitted on 9 October, notably only one day after the temporary measure of the House of Representatives to withdraw the lottery tax from 12 per cent to 18 per cent.

According to the Act, half of the income generated by the 24 per cent tax rate will be invested in social security and public health, while the rest will be allocated to sports, culture, etc. Limberg Faryas applied Comscore 2023 research data to the legal case, pointing out that Brazil is the third largest in the world, after the United States and Britain. “The increase in the size of spinach and the number of bets is accompanied by a number of socio-economic problems”, the Bill states, “The behaviour that often begins with entertainment may eventually lead to gambling addiction. Gambling addiction not only seriously harms the mental health of gamblers and members of their families, but also has a significant financial impact on individuals and families, leading to serious indebtedness.” The Labour Party of Limberg Faryas is currently the ruling party in Brazil, headed by President Lula. The party ‘ s ability to implement economic policy was questioned, however, last week ‘ s failure to adopt a new regulation on the lottery tax. The previous interim measure PM 1,303, aimed at increasing the lottery tax by 50 per cent, had been eliminated before the vote, while the retroactive tax scheme for pre-regulating activities of licensed operators had been rejected.

The previous bill PL 5,076/225 marked a new attempt by the ruling party to promote tax increases in support of the Government ‘ s economic agenda. The bill emphasizes that: “This legislative proposal raises the Brazilian lottery tax to a level higher than the average tax rate in other industries, which is justified by the fact that the lottery is a harmful activity for health and the family economy.” It needs to be emphasized, however, that even if the proposed increase were to be made, the Brazilian rate would be lower than that of France, Germany and others. Therefore, in order to contain this social epidemic, in addition to all the regulatory measures being designated by the federal Government, we must raise the lottery tax to reduce its attractiveness and give the State the resources it needs to invest in the health system.”