More pro-tax hike hardliners in Brazil are rallying behind the proposed 24% tax on betting GGR tabled at the Chamber of Deputies.

Deputy Pauderney Avelino has backed the proposal of Federal Deputy Lindbergh Farias with his own Bill (PL) No. 5,090/2025, which introduces a funds distribution structure to clearly frame Farias’ 24% tax increase Bill.

As reported by SBC Noticias, Avelino noted that Brazil needs to align itself with some of the global leading betting markets where tax is often in the range between 20% and 30%, such as the UK, Spain, and Portugal.

“The new level maintains the competitiveness of the national betting market, guaranteeing the economic sustainability of operators and expanding the capacity of the State to allocate part of this income to public policies of social interest.”

Applicable to both the lottery and sports betting sectors, Avelino’s Bill wants 19% of the collected funds allocated to existing statutory provisions under Brazil law, and 6% funneled into national healthcare projects and social security.

Recent talks about tax increases in Brazil have been heating up over the last week, reaching a boiling point when President Lula’s Workers Party (WP) government suffered a defeat by failing to gather support for their Bill No. 1,303/2025 – looking to raise taxation on the turnover of fixed odds bets from 12% to 18%.

WP’s proposal differs from that of Farias in the way that it is more general, aimed at taxing not only gambling companies but also billionaires and banking institutions.

Interestingly, because it might be viewed as a significant failure to President Lula’s image ahead of Brazil’s General Election in 2026, the WP’s vetoed Bill received significant political endorsement shortly after being rejected – most notably by Senator Cleiton Gontijo de Azevedo and Fernando Haddad, Minister of Finance.