Ministers of Mexico’s Movimiento Regeneración Nacional (Morena) have presented an initiative which proposes the increase of the Special Tax on Production and Services (IEPS), games, bets and lotteries.

Announced by a public communiqué, the initiative advocates that the ‘exclusive power’ to establish tax rates should be returned to the government, while Mexican gambling laws should be withdrawn from state assemblies.

The increase to the taxes are intended to combat the ‘clandestine and informal’ markets operating across Mexico, in addition to promoting greater security measures to betting customers. The two policies have been among the key directives promised by President Andres Manuel Lopez Obrador.

The release detailed: “The proposal includes a new tax initiative for the organization and celebration of sports betting and lotteries, while at the same time, driving a growing industry in our country.”

Morena officials pointed out that Mexican operators had not been taxed in line with international practices, and that the associated social costs linked to gambling have significantly outweighed the revenues generated.

The communiqué added: “We believe that the organization of gambling and lotteries has not been taxed in accordance with international practice and that the social costs associated with this activity have not been fully compensated.”