This week the Chamber of Deputies of Argentina signed into law a bill implementing the country’s 2021 budget. After returning from the Senate, which had already approved it the bill reaffirms the planned federal-level rise in online gaming taxes.
Argentina will face an inflation rate of 29 percent, a 5.5 percent rise and a fiscal deficit of 4.5 percent, according to the new budget. The decision of the Ministry of Finance to raise those taxes was taken in an attempt to achieve “fiscal sustainability”.
The initiative by Finance Minister Martín Guzmán has initiated an increase from 2 percent to 5 percent in online gambling operations since its first draft. The value of each bet and game of chance is added to the tax. Furthermore for businesses operating from “non-cooperating or low-no taxation” countries or tax havens, it increases to 10 percent.
On his social networks Guzmán said: “The recovery of the activities with macroeconomic stability is on the horizon. The budget [is] the tool and pillar of our strategy.”
His project aims for a process of “economic recovery with an expansive fiscal policy scheme and a State that plays a fundamental role in protecting the most vulnerable sectors.”
This would be done by “stimulating the domestic market, promoting growth in production and increasing the level of exports”. Guzmán believes that these steps are “essential pillars for our country in order to sustain growth.”
The Argentinian State Lottery Association (ALEA) raised concerns about the project and argued that it “directly affects local economies since it reduces the income that the provinces and the City of Buenos Aires obtain from gambling through regulatory entities, in their respective jurisdictions. It also decreases the funds allocated to social entities”.
The association also emphasised that because there is no federal legislation in Argentina, the implementation of a tax that affects all the provinces is not right.