Brazil’s President Luiz Inácio Lula da Silva plans to send Congress a new bill taxing betting companies and fintechs. The move comes after legislators rejected his administration’s earlier fiscal proposal.
Strong opposition exists from lawmakers aligned with both sectors. But Lula isn’t backing down.
His government aides confirm the President will launch a public campaign to build support. They’re betting on social media to turn the tide.
Why Lula’s Targeting These Sectors Now
The fiscal framework faces mounting pressure. Revenue demands keep growing.
Lula’s team argues the betting market’s rapid growth justifies higher taxes. Fintechs’ profitability makes them targets too. The proposed bill would push their tax rate to 24%.
Government advisers believe public opinion can pressure Congress despite heavy industry lobbying. They’re framing this as fairness within Brazil’s tax system. Social justice, they call it.
The strategy centres on portraying betting firms and fintechs as “privileged sectors” avoiding their share. According to government sources, voters need to see this as taxing the elite. Not everyday Brazilians.
What the Campaign Strategy Involves
The new approach focuses on mobilising voters through social media platforms. Lula’s advisers plan to echo previous communication tactics that worked before.
They’ll frame the initiative as confronting entrenched interests. The message: a “privileged elite” dodges equitable fiscal contribution while regular citizens pay their part.
This isn’t Lula’s first rodeo with this playbook. Earlier this year, similar tactics led to “Congress is the enemy of the people” trending on Brazilian social media. His team knows how to generate buzz.
The campaign will emphasise responsibility alongside social justice. Betting companies made money. Fintechs grew fast. Time to contribute more, the argument goes.
How This Political Bet Could Play Out
Lula’s using popular mobilisation as his main tool to overcome institutional resistance. It’s a high-stakes political gamble.
Congress already rejected one version. Legislators aligned with betting and fintech sectors remain firmly opposed. Industry representatives continue heavy lobbying efforts.
But the President’s team believes direct voter pressure changes the game. Social media campaigns can shift political calculations quickly in Brazil’s current climate.
The initiative represents one of Lula’s government’s most controversial revenue proposals. Success depends on whether public sentiment can trump industry influence in Congress.
And whether voters actually see betting firms and fintechs the way Lula’s framing them. As privileged players who need to pay up.
