Argentina are set to introduce a 5% tax on online gambling, an increase of 3%, in bid to tackle economic crisis
The 2021 budget in Argentina will include a tax increase of 3% on online gambling, raising it from the previous 2% to what now will be 5%. The increase is “on the gross amount of each bet:, and it will increase by 10% for bets involving a company or a subject based in a country which is ‘non-cooperative’, meaning a tax haven.
The vote on the 2021 budget will take place this week in Argentina and as the state is looking for alternative funds, one of the proposals will include a tax increase on online gaming. Argentina has been hit hard by the current pandemic and has sunk into an economic crisis with an increase in unemployment and poverty, together with major concerns surrounding foreign debt.
Martin Guzman, the Minister of Finance, included this tax increase in a bid to ease the strain on the economy, with the National Communications Agency (Enacom) put in charge of the registration of domains.
The gambling industry in Argentina generates amounts as high as $2.4 billion annually but the government does not receive a percentage of these funds due to operators working unofficially since the industry is not regulated on a national level. This will all change once the budget passes. Once legalised and regulated, the proposal projects that 95% of the revenue generated will be directed straight to the provinces while the other 5% will finance any investment plans proposed by Arsat, a state communications services company.
Arsat will acquire a small portion of revenue since they will work hand in hand with the government to monitor activity and acquire data about the industry’s gross income, aiding the country to collect more resources for the state.
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