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Mexico – Mexican Gaming Association wants elderly exempt from new tax

By - 17 January 2017

The Mexican Gaming Association (AIEJA) has asked that the elderly be exempt from new taxes which will be imposed on gaming establishments in the state of Nuevo León.

In a statement the organisation said while it recognised the decision of the state to correct flaws in the 2017 budget in order to help the local population it said that the new tax on gaming would hit older people especially hard. It is estimated that around 70 per cent of the income generated by casinos and betting centres in the state derive from senior citizens. The new tax rules state that for every 100 pesos that the player spends ten per cent tax is payable by the player. The tax is charged the moment the player buys chips or tokens.

In a statement the Association said: “For that reason we express that it is the responsibility and privilege of the local deputies of Nuevo León to reverse the discriminatory attitude and the absence of dialogue with elderly ladies and gentlemen who in casinos find a pass time together in a friendly and safe environment.” The new tax means that “they are stripped of 10 per cent of their budget destined for that moment of recreation to which they are entitled, even before playing, simply by entering these centres of amusement.”

The new tax according to the AIEJA would be especially harmful to elderly women “who find in these places a safe, comfortable place for their entertainment coexistence and distraction.” The AIEJA insisted that new laws should be reconsidered and that lawmakers should reopen dialogue in order to find a solution to the problem that would affect “thousands of people.”

However deputy for the state, Arturo Salinas, ruled out that the AIEJA’s proposals would be looked at during a special session on Wednesday (January 18th) but rather other measures such as property tax as well as other more pressing matters would be discussed instead.

Earlier this month the AIEJA reiterated its disagreement with the new taxes. The AIEJA says that the new taxes are unfair as other businesses in the entertainment sector do not pay such a high rate of tax and that the new law does not include online gaming, lotteries or illegal gambling machines which are widespread in the state.

The new tax is part of this year’s tax reform bill. Local officials hope that the new tax could raise up to one billion pesos in a year, with a 30 per cent going to the fund for a special security fund and the rest to the state coffers in order to reduce the deficit.

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