Argentina’s Chamber of Deputies has signed into law this week the bill that introduces the country’s 2021 Budget. After returning from the Senate, which had already given its approval, the bill reaffirms a proposed increase on online gambling taxes at a federal level.
According to the new budget, Argentina will experience an inflation rate of 29%, a 5.5% growth and a fiscal deficit of 4.5%. The Ministry of Finance’s decision to increase certain taxes has been taken in a bid to achieve “fiscal sustainability”.
From its first draft, the project from Minister of Finance Martín Guzmán introduced a rise from 2% to 5% on online gambling operations. The tax is applied to the value of each bet and game of chance. In addition, it rises to 10% for companies that operate from “non-cooperating or low-no taxation” countries, or tax havens.
“The recovery of the activities with macroeconomic stability is on the horizon. The budget [is] the tool and pillar of our strategy,” said Guzmán on his social networks.
Guzmán’s 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 will be accomplished by “stimulating the domestic market, promoting growth in production and increasing the level of exports”. Guzmán believes that these measures are “essential pillars for our country in order to sustain growth”.
The Argentinian State Lottery Association (ALEA) raised concerns over the project and argued that this “directly affects the 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 stressed that since there is no federal regulation in Argentina, it’s not correct to apply a tax that affects all provinces.
