Legislation

MPs include 'Bets' and Electric Cars in Brazil's selective tax system

Friday 05 de July 2024 / 12:00

veja.abril.com.br

⏱ 1 min read

(Brasilia).- The report released by the Working Group on the Regulation of the tax reform on Thursday, 4, includes gambling and electric cars in the selective tax, popularly known as the "sin tax". Lorries were left out. The text is expected to be put to a vote on the floor of the House next week.

MPs include 'Bets' and Electric Cars in Brazil's selective tax system

The tax, which has been nicknamed the "sin tax", targets products that are harmful to health and the environment and was created by the constitutional amendment that reformulated consumer taxation. Working Group took the view that all games of chance are harmful to health and should be included in the list. All games, both physical and digital, will pay tax, which includes lottery betting, betting, fantasy games and other ways of existing games in the iGaming market.

Another product on the list of products that will be subject to excise duty is alcoholic drinks, which were already on the list. However, the group also explained that the tax will be progressive: the higher alcoholic conent, bigger taxes.

The sin tax should also affect electric vehicles, according to the opinion of the Working Group. Deputy Hildo Rocha (MDB-MA) explained that the working group's understanding is that electric vehicles pollute "from the cradle to the grave". "Especially in the grave, and that's why it couldn't be any different in relation to combustion-powered vehicles," said Rocha.

Golf carts are also on the list, as they "pollute in the same way", said the MP.

Lorries, on the other hand, are not on the list of vehicles that will pay selective tax, since they are a productive activity and, according to the Working Group, Brazil is a road country.

By Camila Pati

Categoría:Legislation

Tags: Sin tags

País: Brazil

Región: South America

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