Colombia’s gaming industry calls upon government to address tax concerns

TAXATION, Colombia, tax, gaming
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Speaking at the second edition of Gaming Market Colombia this October, Evert Montero Cárdenas, president of trade body Fecoljuegos, called on the government and the regulator to take a fresh look at the current tax rate for gaming operators.

“We urgently need [the government] to revise [the taxation framework] and consider a tax rate to help this business to become both more competitive and sustainable,” he stated.

During the event, the president of Coljuegos, Juan B Pérez Hidalgo, acknowledged that the regulator is aware of the impact the current tax rate is having on operators’ margins.

“There are certain tax revenues which are essential for the state, while it’s difficult to reduce them, we are open to looking at what we can do. However [the industry] still has a lot of space to grow,” he clarified.

“If we are able to reduce illegal gaming – which in many sectors is estimated to form at least 50 percent of the industry – we will be able to help [licenced] operators improve their revenues and their overall business.”

Alongside this, the deputy minister of Finance, Luis Alberto Rodríguez, confirmed that the government is in the process of analysing ways in which it can ease the tax burden on operators.

He explained that the government is looking at revising the tax law to ensure that operating a legal small to medium-sized enterprise “will not simply be another cost but will also have benefits”.

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