Taxation on Sin, Brazilian Regulatory Framework and Development

a Brief Analysis of Bill no. 186/2014

Abstract

The present work deals with the tax that affects the gambling, according to Project Law no. 186/2014, which aims to regulate and authorize the activity of gambling. What has happened is that the tax established in the aforementioned Project Law would not be sufficient to achieve the economic and programmatic objectives inscribed in the Constitution and that they coincide with the objectives brought in the normative vehicle. And, as well, the present study found that a Contribution of Intervention in the Economic Domain (CIDE) would be the best option for tax policy to focus on the activity, which could even extend to other economic areas not yet cleared by the Brazilian State. And this finding was only possible, after a methodological path that first verified the tax policy of Sin Taxes (as a reference for work). Finally, a compatibility analysis was done between tax species and the model extracted from the conclusions of previous chapters. It was therefore found that CIDE would be the best alternative for the taxation of gambling, as well as other activities still prohibited and not regulated by Brazil, such as the trade in cannabis sativa.