Legislation

Congresswoman proposes 20 per cent tax on slots and casino games in Peru

Congresswoman Digna Calle Lobatón presented bill No. 8,981 aimed at reforming the tax structure for casino games and slot machines in Peru.

The bill proposes an increase on the tax on table games and slot machines up from 12 per cent to 20 per cent with the aim of “preventing and treating the mental health problems of the population caused by gambling addiction and other impulse control disorders.” However the bill does not address online gambling.

The legislative initiative aims to modify articles 39 and 42 of Law No. 27153, which regulates the operation of casinos and slot machines to increase the tax rate on these activities.

As stated in the text the bill’s purpose is to:

• Promote the prevention and control of mental health diseases
• Develop a tax reform with a progressive approach, based on economic development and formalization, ensuring full respect for the constitutional rights of taxpayers
• Ensure the quality of public social spending.

Digna Calle’s legislative initiative states that 8 per cent of the revenue collected will be allocated to the Ministry of Health for prevention and treatment of mental health issues stemming from gambling addiction and other impulse control disorders. The measure states that the remaining 12 per cent from the increased taxes will be distributed among provincial and district municipalities, as well as to the Public Treasury, the Ministry of Foreign Trade and Tourism (MINCETUR), and the Peruvian Institute of Sport (IPD).