The Porto Alegre (RS) City Council approved an amendment to reduce the ISSQN (Tax on Services of Any Nature) rate from 5% to 2% by 2036. The measure includes sports betting services, lotteries, bingo and prizes. sweepstakes.
According to the government of Mayor Sebastião Melo (MDB), the tax reduction aims to attract companies in the betting sector, which has been growing rapidly since regulation in 2023.
Tax incentive aims to boost the local economy
“With the tax reduction, Porto Alegre seeks to position itself as a hub for the segment, which promises to generate jobs, boost the local economy and increase tax revenue. The activity adds to the other 62 in which we had already reduced the tax”, explained Rodrigo Fantinel, Secretary of Treasury.
So, the bill incorporated the proposal of councilor Cláudio Janta. With this, it also extended the ISS exemption for public bus and selective bus transport until 2026. Initially, the exemption would end in 2024.
Public transport will also benefit
The City Hall justified that the ISSQN exemption for public transport by bus is a historic policy to contain the cost of fares for citizens. Therefore, in 2022, they introduced exemptions for transport based on capacity to reduce fares, attract more passengers and improve urban mobility.
“The ISSQN exemption is a historic measure to reduce costs and improve the population’s access to public transport”, highlighted the City Hall.
New breath for the sports betting sector
With the regulation of sports betting, Brazil is experiencing a new phase in the iGaming market. The approved measure seeks to take advantage of the favorable moment, in addition to aligning Porto Alegre with cities that already adopt incentives to attract companies in this segment.
The proposal now goes to Mayor Sebastião Melo for approval. In this way, the capital of Rio Grande do Sul should consolidate itself as one of the main iGaming hubs in the country. This will certainly have a direct impact on the job market and municipal revenue, if sanctioned.
