Advancement of the Bill in the City Council
The Belo Horizonte City Council is about to vote, in the first round, on a bill that promises to reduce tax burden about online sports betting platforms, popularly known as ‘bets’. The proposal, authored by the City of Belo Horizonte, aims to reduce the Tax on Services of Any Nature (ISSQN) rate from 5% to 2%.
The project, identified as PL 503/2025, was discussed at the Budget and Finance Committee on the morning of Friday, November 28th. During the meeting, the opinion in favor of approval was accepted by the board, signaling an important step for the proposal to go to the Plenary for voting.
Approval of the project requires the support of two-thirds of the members of the Chamber, that is, 28 votes. If approved, the project could be voted on definitively, representing a significant change in the city’s tax policy.
Economic Impact and Justifications
The justification for reducing the rate, according to City Hall, is centered on attracting new companies to Belo Horizonte. The measure is seen as a strategy to stimulate the sports betting sector, contributing to the economic strengthening of the municipality.
Although the estimated tax waiver for 2025 is only R$11,000, the municipal administration believes that the reduction in tax it can make the city more competitive in relation to other Brazilian municipalities that have already adopted similar tax policies.
The Chief Executive highlighted that the measure is in line with practices adopted in other cities, seeking to create a more favorable environment for economic growth and job creation in the sector.
Benefits for Sports and Recreational Clubs
In addition to addressing the issue of online betting, PL 503/2025 also proposes benefits for sports and recreational clubs that have debts with the municipality. The proposal changes the time frame for granting bonuses in the payment of debts registered in Active IPTU Debt.
Currently, the benefit is only valid for debts generated until 2014. With the new proposal, the deadline would be extended until December 31, 2020, allowing 95 entities to be included, covering a total of R$15.1 million in debts.
This measure aims to strengthen the Sports for All Program, facilitating the fiscal regularization of clubs and expanding the offer of sporting and social activities to the population of Belo Horizonte.
Project Support and Evaluation
The project’s rapporteur, Leonardo Ângelo, highlighted that the proposal is in accordance with the municipal competence to deal with the ISSQN, in addition to adopting economic incentive policies supported by current legislation.
He highlighted that the expansion of the use of IPTU bonuses does not violate tax equality and is within the constitutional limits for granting tax benefits. The proposal was considered well-founded legally, with adequate financial estimates and compatibility with the Master Plan, the Multi-Year Plan (PPA), the Budget Guidelines Law (LDO) and the Annual Budget Law (LOA).
The parliamentarians present at the meeting, Arruda (Republicans), Diego Sanches (Solidarity) and Marilda Portela (PL), agreed with the rapporteur, reinforcing their support for the project. So far, no amendments have been presented to the text, which could facilitate its approval in the Plenary.
The reduction in the rate to 2% is a strategic measure to attract companies in the betting sector to Belo Horizonte, in line with the practices of other Brazilian municipalities in the search for more competitive tax policies.
Source: bnldata.com.br
Fonte: Gaming365 – Brasil
