Legislation

Argentina – Buenos Aires Legislature to debate new tax on prizes this week

The Legislature of the City of Buenos Aires will address in a regular session this Thursday, project regarding the Fund for Integration and Social Development (FIDeS), to finance infrastructure and assistance programs in social areas.

The new fund will be funded partly by resources generated from a new tax imposed on the prizes awarded by slot machines. On Friday the Budget Commission of the Legislature turned the new initiative over to the city legislature. The new bill has already been signed by mayor of the city Horacio Rodríguez Larreta and his Minister of Economy, Martin Mura.

The norm indicates that the new fund will be earmarked specifically “for the financing of programs of infrastructure, maintenance and assistance, in health, education and social development”. It will be composed mainly of a contribution of 2 per cent tax on all prizes awarded by slot machines in the city. The measure will be imposed on players when betting on the slots located in the capital both in the racino located under the racetrack in Palermo and the floating casino in Puerto Madero.

The Buenos Aires initiative is similar to a bill recently presented by the Governor of Buenos Aires, María Eugenia Vidal. Vidal’s new Budget Bill for 2019 if passed will impose a two per cent tax on slot machine winnings.
The government is looking at ways to raise extra cash and make up for budget cuts as the government, led by President Mauricio Macri, seeks to meet requirements set out by the International Monetary Fund (IMF). Gambling as a way to raise additional funds is now squarely in the spotlight. According to local sources, the new tax on players could create a windfall of $2,000m for the City and $5,000,000m for the Buenos Aires province. Argentina’s economic activity shrank 5.8 percent in September compared the same month last year, according to official statistics.