Brazil’s president wants to give gamblers and bettors a break, but Congress may stand in the way
Brazil’s Congress will reconvene on February 2, when they’ll have until a March 3 deadline to decide whether to retain or revoke President Lula’s vetoes to Law 14.790/23 (formerly Bill 3.626/23).
The foremost issue is the income tax exemption for gamblers who win up to BRL 2,112 ($430) in prizes, which was part of the bill approved by the Chamber and vetoed by Lula.
Games Magazine Brasil reported on its website that the Chief of Staff of the Presidency explained the exemption’s veto in a statement sent to Rodrigo Pacheco, President of the Senate:
“The maintenance of §§1 and 3 of Art. 31 of the Sports Betting Bill would result in an Income Tax taxation different from that found in other lottery modalities, thus creating a distinction in tax conduct without a reason to motivate it,” reads the statement.
It continued, saying, “In addition, the maintenance of §2 of Art. 31 of the bill would also go against fiscal equality, in the terms of Art. 150, II, of the Federal Constitution, since it would introduce a logic of Income Tax exemption at odds with the ordinary rules existing in the area of the collection of lottery prizes in general, established by Art. 56 of Law no. 11.941, of 2008.”
If lawmakers fail to vote on the veto within 30 days during the joint session between deputies and senators, the issue will be added to the agenda and remain there until it’s debated. An absolute majority of deputies (equal to 257) and senators (41) is required to override President Lula’s vetoes.
