Last Tuesday, April 18, Chicão Bulhões, the municipal secretary for Economic Development, Innovation and Simplification, attended the Rio Chamber to start talks on Bill (PL) No. 1822/2023, presented by the Executive. The purpose of this proposal is to establish a reduced rate of the Tax on Services of Any Nature (ISSQN) for several companies, including online bookmakers and those established in the city of Rio.
As reported by the secretary, the betting market in Brazil generated a financial movement of around R$ 7 billion in 2022 and the forecast is that, in 2023, this value will reach R$ 12 billion.
Councilman Carlo Caiado (PSD), who presides over the Legislative House, emphasized the relevance of processing this proposal. He stated that “The discussion is important so that the city can collect taxes”. However, the parliamentarian expressed his curiosity to know how the City Hall plans to inspect the benefited companies, what will be the impact of this taxation on the city’s collection and if it would be possible to allocate part of these resources to promote amateur sports.
So far, the Municipal Treasury Department has not calculated the fiscal effects of taxation for the city. However, Chicão Bulhões stated that he fully supports the promotion of sport in the city. He also highlighted that, to attract companies, tax competitiveness is not enough.
“It is important, but we need to have a broader work, add to other factors, such as having a qualified workforce and having a good business and political environment”, said the secretary.
Councilman Pedro Duarte (Novo), who supports the bill, expressed his concern with article 3 of the proposal, which establishes that the rate reduction will be linked to the increase in the ISSQN calculation base due, in relation to services provided by companies in the sector in general, at a rate of 10% every five years, in the 20 years following the publication of the law.
“What will be the initial calculation base? We need to know the formula that will be used as a parameter”, questioned the parliamentarian, adding that, in the first year, online bookmakers, for example, will start from scratch.
According to Bulhões, the intention is for the rate reduction to be applied from the second year onwards for these companies. This may be determined by special regulation or by means of an amendment. The secretary undertook to provide calculations of the impact that this measure could have on the city of Rio.
In addition to councilors Carlo Caiado, Pedro Duarte and João Ricardo (MDB), who had already been mentioned earlier, the following councilors were also present at the meeting: Átila A. Nunes (PSD), government leader, Teresa Bergher (Citizenship), Dr. Rogério Amorim (PTB), Marcelo Diniz (Solidariedade), Rocal (PSD), Marcio Santos (PTB), Welington Dias (PDT), Alexandre Beça (PSD), Luciana Novaes (PT), Luciana Boiteux (PSOL) and Niquinho (PT ).
