Discussions on the legalization of gambling in Brazil continue. As the country continues to shape its tax reform, taxing gambling can add a big boost to government coffers. In addition to increasing tax revenue, legalizing gambling can increase tourism volumes and create new workplaces.
Legalization of gambling in Brazil to help with taxes, workplaces and tourism
It was in the 1930s when Brazil established over 70 casinos across the country. Licensed at the time, gambling had a few strong years from 1934 to 1946. However, in 1946, a ban on gambling and casinos was introduced by President Eurico Gaspar Dutra. This effectively closed all places of play in the countryside.
It now appears that the ban in place for more than five decades is coming to an end. This can happen in light of the tax reform underway in Brazil, which can also lead to the legalization of gambling activities.
Senator IrajÃ¡ Silvestre Filho, who proposed a bill calling for the creation of integrated stations (IRs), revealed in August that the activity could generate billions in taxes. He predicted that about $ 3.42 billion (BRL18 billion) in taxes can be generated by IRs. In addition, according to Filho, these stations can attract $ 8.36 billion (BRL 44 billion) of investments.
With this in mind, taxation alone is not the only argument Brazil is considering legalizing gambling. If the activity is legalized, hundreds of thousands of workplaces would be created. Such a change will undoubtedly result in growth in terms of tourism.
Tax revenues could be considerably higher, senator says
According to Senator Angelo Coronel, who recently spoke to Bloomberg, if the tax reform includes the legalization of games of chance, tax lawsuits could reach $ 9.5 billion (BRL50 billion) per year. Coronel supports a bill that proposes the legalization of gambling, but it is also rapporteur in the Senate.
He revealed that if tax reform does not reduce taxes, it is not reform. According to Coronel, if tax reform results in a loss of tax revenue, an alternative such as legalizing gambling may be an appropriate option to close the gap.
Although the bill proposing the legalization of gambling has been passed by the lower house, now the Senate must also vote. Before voting, the Senate will hold several public hearings, but Coronel hopes they can vote by November.