Lawmakers debate redirecting part of betting tax income as Congress prepares to vote on the Security PEC.
 

Key Points

Brazil’s Government is discussing redirecting part of betting tax revenue to fund public security policies

The proposal relates to tax changes approved last year that increased the betting tax rate from 12% to 18%

Debate over a referendum on reducing the criminal age of responsibility has created tensions ahead of the vote
 

Brazil’s Government is exploring the possibility of redirecting part of the country’s betting tax revenue to help finance public security initiatives as lawmakers prepare to vote on the Security PEC in Congress.

A PEC is a Proposal to Amend the Constitution in Brazil, representing the formal mechanism used by Congress to alter the nation's 1988 Federal Constitution. It requires an approval process involving a three-fifths majority vote in two rounds in both the Chamber of Deputies and the Senate. 

The discussion emerged during negotiations ahead of the vote on the constitutional amendment proposal, with government officials seeking ways to secure funding for expanded security policies without introducing a new tax.

Under the proposal being discussed, part of the revenue generated from the betting tax increase approved last year could be redirected to public security programs. 

According to estimates cited in discussions between lawmakers, the redirected portion of the tax could generate around BR5bn ($958m) per year for public security initiatives.

Currently, the revenue from betting taxation is directed to social security. 

Adjusting its allocation would require changes to how those funds are distributed but could provide the Government with a new source of financing at a time of fiscal constraints.

Government officials reportedly see the proposal as a potential way to address demands from state governors for additional resources to fund policing, technology and initiatives aimed at tackling organized crime.

The move comes after days of negotiation surrounding the report presented by the Senator Mendonça Filho, who also maintained in the text the possibility of a popular consultation on the age of majority.

The PEC is expected to be voted on first in a special committee before potentially moving to the chamber’s plenary later the same day.

 

 

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