Brazilian Finance Minister Fernando Haddad has confirmed gambling tax in the country will increase from 12% to 18% of GGR.The Brazilian Institute of Responsible Gaming or IBJR has spoken up about the increase in tax and said that this would result in the black market growing from 50% to 60%. Six of the largest gambling trade associations have also released a joint statement pointing out that the gambling sector has already contributed significantly to the country and to impose higher tax will be a burden.
Do you think that casinos would continue to want to operate in Brazil with these taxes? I am assuming that as a result, casinos would offer higher prices on their services as well due to the taxes and would most likely drive away customers. Would this eradicate the gambling sector altogether?
Even from the article, I still did not understand who pays the tax and what is the object of taxation. Does the casino or the gambler pay the tax? If a gambler pays, then the winnings are taxed and this is a direct tax In general, winnings are usually taxed in many countries, so this is not unusual. Although the tax on winnings is of course absurd, but such is the nature of the authorities, to tax everything that is possible.