The initiative by Digna Calle aims to increase the tax rate from 12 to 20 percent.
Peru.- Congresswoman Digna Calle has introduced a bill aimed at increasing the tax rate on casino games and slot machines covered by Law 27.153, which regulates their operation to prevent and treat mental health issues stemming from gambling addiction and other impulse control disorders.
The Bill N° 8981 seeks to amend Article 33 of the tax rate to 20 percent (meaning, the tax would increase from the current rate of 12 percent to 20 percent).
Calle's initiative also aims to amend Article 42 regarding the allocation of revenues generated from the tax on casino games and slot machines. It states that 8 percent of the collected amount will be allocated to the Ministry of Health, for use in the prevention and treatment of mental health issues arising from gambling addiction and other impulse control disorders, while the remaining 12 percent, resulting from the tax increase, will be distributed among provincial and district municipalities; as well as to the Public Treasury, the Ministry of Foreign Trade and Tourism (MINCETUR), and the Peruvian Sports Institute (IPD).
Article 4 of Law 27.153 states that casino games are “any table game that uses cards, dice, or roulette wheels and accepts public bets, the outcome of which depends on chance, as well as other games that are granted this classification in accordance with this law”.
The same law states that slot machines are “all gaming machines, electronic or electromechanical, whatever their name, that allow the player a time of use in exchange for the payment of the price of the play based on chance and, eventually, the obtaining of a prize according to the game program”.
That is, the current regulations only consider physical gambling games in the country, but not companies that operate in Peru through online gambling or online betting houses.
In the statement of reasons, Congresswoman Calle states that for 2023, the MINSA for the budget category 0131 of mental health control and prevention only budgeted S/698,587 (USD184,459) where attention to gambling addiction is not considered, nor is a budget item for gambling addiction considered.
The bill states that a biennial national program for the prevention and rehabilitation of gambling addiction must be developed, so the Minister of Health must report in writing in March of each year to the Health and Population and Foreign Trade and Tourism Committees of Congress on the results of the application of the national program.
It is worth noting that recently, the Minister of Economy and Finance of Peru, José Arista, reported that the legislative decree was approved by which remote games and sports betting under the same modality will be taxed with the selective consumption tax (ISC).
“Today, in some way, a tax created by Law N° 31557, which regulates the exploitation of remote games and sports betting, has been complemented,” said Arista.
