.svg)
Brazil’s Congress has installed a joint committee to analyse Provisional Measure 1.303/2025. The measure introduces new taxes on online betting, virtual assets and financial investments.
Senator Renan Calheiros was elected president of the commission. Deputy Carlos Zarattini will serve as the main official overseeing the review process.
The committee includes representatives from both legislative chambers. They will handle all aspects of reviewing the provisional measure before the October deadline.
Finance Minister Fernando Haddad will appear at the first hearing. He originally suggested the betting taxation increases that are now under consideration.
The commission represents various political perspectives on the tax proposal. Different members have already expressed conflicting views on the measure’s purpose and necessity.
The measure is part of a strategy to rebalance the national budget. This follows the annulment of previous IOF (Brazilian Tax on Financial Transactions) hikes.
The government needs alternative revenue sources after losing the IOF increases. Online betting taxation represents one potential solution to budget shortfalls.
Senator Randolfe Rodrigues described the proposal as “tax justice.” He framed it as addressing social matters through the tax system.
However, Senator Izalci Lucas criticised it as a revenue-raising move. This disagreement reflects broader political divisions over the measure’s true purpose.
The timing coincides with ongoing budget pressures facing the Brazilian government. Officials are seeking new revenue streams to address fiscal challenges.
The committee will hold four public hearings in August. The first session will feature Finance Minister Fernando Haddad discussing the betting tax proposal.
Subsequent sessions will address betting taxation alongside other financial issues covered by the measure. Deputy Zarattini emphasised the need to hear from all affected sectors before finalising the bill.
This includes stakeholders from the betting industry itself. The committee plans to gather input from operators and other industry participants.
São Paulo-based betting operators are forming a new industry union. They want unified representation during the regulatory dialogue process.
The hearings will examine the measure’s impact on virtual assets and financial investments. These sectors are also affected by the proposed taxation changes.
The commission’s internal vote is scheduled for the end of August. This provides approximately four weeks to complete all hearings and deliberations.
The provisional measure must be approved by both legislative chambers before October 9. Missing this deadline would render the measure invalid.
August hearings will cover betting taxation plus other financial issues included in the measure. The committee faces a compressed schedule to meet the October deadline.
The process creates time pressure for both legislators and industry stakeholders. They have limited opportunities to present positions and influence the final outcome.
If approved, the measure will create new tax obligations for online betting operators. The exact rates and implementation details remain under discussion during the committee review process.
