On Monday, the Treasury Commission of the Jalisco Congress in Mexico approved the State Revenue Law for 2021, which imposes a 10 percent tax on slot machine awards and casino games.
Governor Enrique Alfaro of Jalisco, who proposed the bill, argued that one of the priorities of his term was to lift the budget to $6.2bn. The proposed Tax on Gambling Expenses in the Jalisco Revenue Act will achieve this.
The president of the Treasury Commission, Deputy Gerardo Quirino Velázquez said: “We would collect around $20m with this new tax, which we’re already including in our revenue. We changed the Finance Act to give legal support to this tax.”
Furthermore, Deputy Enrique Velázquez González indicated that the Red Cross, the Cancer Institute and Civil Hospitals be sent the revenue that would come from this tax. Deputy Sofía García Mosqueda also proposed spending 25 percent of the funds in the fight against gambling issues.
Last month, the President of the Commission told the Commission that while the new tax was defined in detail as a new article, it was already in place in the Mexican State and that it had agreed to separate it because there were numerous undertakings which had prevented it because of its vague description.
“Different businesses like casinos were already operating but disguised as other things. Then we decided to establish a new list to be able to cover all those businesses that had the same characteristics as casinos,” Quirino Velázquez said.