End of Sports Incentive Law worries athletes and mobilizes parliamentarians

The Sports Incentive Law, the main instrument for stimulating the financing of social projects in the sector, has until December to be extended or it will no longer be valid. The end of the term worries athletes and has mobilized parliamentarians.

Created in 2006, the law expires on December 31 of this year. Currently, there is a bill under discussion in the Senate that would extend the instrument until 2027.

The project is currently being discussed at the Sports, Culture and Education Committee — where it needs to be approved to go to the House plenary. If it advances again, it will be sanctioned by the Presidency.

The deadline would not be such a problem if 2022 were not an election year, in which the activities of the Legislature lose space for the search for votes. Congress goes into recess on July 17, and, even before that, parliamentarians say that the work is already getting more difficult — since several colleagues are on campaign commitments outside Brasilia.​

Activities only return in November, and normally with an accumulation of agendas to deal with until the end of the year. Politicians and people connected to the sport admit that it is difficult to measure whether there will be time to fit the bill after the elections.

With the decrease in the Union’s resources for sports in recent years, the incentive law has gained a fundamental role for the activity in Brazil.

In total, since 2007, the first year in which it came into force, more than R$ 5 billion have been raised (in values ​​adjusted for inflation). The biggest recipient is high performance (competitive) sport, followed by educational sport and participatory sport (focused on social and health projects, for example).

“Currently, the biggest risk that Brazilian sport runs is not having the law renewed, suspending from one moment to the next a mechanism that has supported the development of national sport in all its dimensions”, says Ana Moser, bronze in the Atlanta-1996 and director of Atletas Pelo Brasil, an organization that has mobilized athletes for the agenda.

Moser is also president of the Instituto Esporte e Educação, which works with children and teachers. According to her, there are 4,500 children and young people assisted each year, in three states, and 4,000 teachers. About 70% of the institution’s funding comes from the incentive law.

According to the management report of the Ministry of Citizenship, almost 3 million children and young people have already been assisted in some way with the law’s resources since its creation.

In addition to projects, the law covers clubs such as Flamengo, Corinthians, Minas Tênis and Pinheiros, as well as confederations such as rugby, judo and water sports.

There was an expectation that the project would be guided by the sports commission this week, which did not happen. Now, the idea is that this will happen in the next one, and then it will be submitted to the plenary.

“Even for me, it was really a surprise. Since he didn’t enter, let’s wait for next week. It’s essential to vote before the recess. I can’t say that it will be voted on, because Rodrigo Pacheco decides that [PSD-MG]but there is a request for this to happen”, said Romário (PL-RJ), who will be the rapporteur of the proposal in the plenary.

There are two points in the current text that may cause some debate during the process – and, if there is a change in the content of the bill, it will need to go back to the Chamber before going to sanction, further delaying the discussion.

The first point under discussion is that the new project provides for an increase in the tax deduction limit for corporations and individuals, from 1% to 2% and from 6% to 7%, respectively. When the proposal passed through the Chamber, Deputy Luiz Lima (PL-RJ) stated that there was resistance within the Ministry of Economy on this point.

According to Carlos Portinho, deputy leader of the government in the Senate, it must be taken into account that the government has among its priorities areas such as infrastructure, education, health and security. But he thinks it possible to find space for the law.

“The worst scenario is not to pass the law,” said Portinho. “This is an incentive policy that has worked, not least because the Sports Ministry has very little resources, it no longer has the status of a ministry. It is a worthwhile sacrifice for the government,” he said.

The bill also provides for an increase in the list of companies that would be able to donate money, also adding those that pay taxes through the presumed profit rules – more simplified.

The problem is that there is a 1997 law that says that “no tax incentive deduction will be allowed” for companies using the presumed profit model.

Thus, if the project is approved with this provision, it may be challenged in court or vetoed by the Presidency. If its content is changed to prevent this, it will have to go through the Chamber again. Vetoed, it would be analyzed again by Congress.

“I see this point as positive because it would increase the range [de empresas aptas a contribuir]. Now, in congressional negotiations, sometimes we have to give a finger to guarantee the other, right? So, if you ask me, I prefer to keep the rate increase, but I think there is room for negotiation”, added Portinho.

Meanwhile, the senators are working to try to make a change in the wording of the text, a procedure that allows the issue to go straight to the presidential sanction, even with the adjustment.

“We are doing [a solução para esses impasses] with the understanding of the government”, said Romário.