Brazil lower house passes bill cutting tax benefits, raising levies on bets and fintechs

SAO PAULO, Dec 17 (Reuters) - Brazil's lower house approved early on Wednesday a bill reducing federal tax benefits for several sectors by 10% and increasing taxes on betting companies and fintechs.

• The measure now heads to the Senate.

• The government had urged lawmakers to approve it, including the higher taxes, to help close the 2026 budget.

• Under the move, fixed-odds betting taxes will rise from the current 12% to 13% in 2026, 14% in 2027 and 15% in 2028.

• Half of the additional betting tax revenue will go to social security and half to health programs.

• The bill also raises the CSLL tax on some financial institutions. Fintechs are set to pay a 17.5% rate through end-2027 and 20% starting in 2028, up from 15% now.