😱 Brazil🇧🇷: Tax hike on betting proposed to offset IOF increase

😱 Brazil🇧🇷: Tax hike on betting proposed to offset IOF increase

The president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, has proposed increasing taxes on betting as a way to offset the negative effects of the rise in the Tax on Financial Operations (IOF).
Economic context:

➡️ At the beginning of the year, the Central Bank raised the base interest rate to 14.75%, the highest level since 2006. According to Mercadante, this measure makes credit more expensive, affects productive investment, and could increase inflationary pressures.

➡️ Оn May 25, the Brazilian government published Decree No. 12,466, which raised the IOF rate on outbound foreign exchange operations—i.e., international transfers from Brazil:

🔻 Previous rate: 0.38%
🔻 Current rate: 1.1%

➡️ Although Mercadante acknowledges that the IOF helps increase fiscal revenues and improve the debt-to-GDP ratio, he warns that the measure is not well received by taxpayers or the financial system.

➡️ In this context, he suggests that raising taxes on the gambling and betting industry could be a viable alternative to maintain fiscal balance without putting additional strain on more sensitive sectors of the economy.

#news #Brazil #gambling #economy

🏦 Payouter.com — looking for traders for processing in 🇮🇳 India: P2P, P2C, Intent. We are waiting for you