Senate Panel Delays Vote on Tax Hike for Bets and Fintechs After House Pushback

Overview

• The CAE session set for Tuesday was pulled after Renan Calheiros said Senate President Davi Alcolumbre relayed House Speaker Hugo Motta's signal that the Chamber would not advance the bill in its current form.
• The committee rescheduled the vote for next week, with any approval carrying terminative effect unless eight senators request a plenary review.
• The proposal doubles the tax on online betting from 12% to 24% and lifts the CSLL to 15% for fintechs and 20% for banks as part of the revenue plan to fund a new income tax exemption up to R$5,000 per month.
• Relator Eduardo Braga is preparing a complementary vote with calibrated rates and conditions tied to government action against illegal operators after 21 amendments and sustained lobbying by betting platforms.
• In a separate vote, the Senate approved the Rearp asset-regularization package and parts of the lapsed IOF measures with an estimated fiscal impact of about R$19 billion, forwarding the text for presidential sanction.