LUN 20 DE MAYO DE 2024 - 00:02hs.
Draft

Mexican Justice to evaluate elimination of a gaming tax

The Minister of the Supreme Court of Justice of Mexico, Yasmín Esquivel, proposed to the Second Chamber to rule against the tax that states such as Nuevo Leon, CDMX (Mexico City) and Puebla charge to casinos. The regulation, which was created in Nuevo León in 2017 and in recent years was adopted by other regions, could be canceled by the Justice. For Esquivel, that tax has a contradiction of origin.

“On the one hand, the claimed taxes were created by identifying an industry in economic growth that would allow to increase the collection; but on the other, they were created to discourage gaming with bets,” she said. According to the minister "the contrast between means and ends is clear."

Nuevo León currently charges customers 10% of the amount of their bets, and casinos, 6% of the total value of bets received, so in its Revenue Act 2020, it expects to raise US$ 27.5 million for the first tax, and US$ 5.2 million for the second; both are equivalent to 5.5% of the income provided by local taxes.

In addition to the fact that companies would no longer have to charge their clients 10%, nor pay the corresponding 6% to them, the Government of Nuevo León would have to return what they paid for this last tax since 2017, with interest.

Mexico City only charges punters 10%, and in 2020 it expects to obtain US$ 23 million, equivalent to 0.7% of its tax revenue.

In Puebla, it was approved to collect the State Tax on Gambling and Drawings tax, with a 6% rate on “natural persons, legal entities and economic units that make games with bets and draws in the territory of the state.”

The draft ruling of the Minister argues that the Constitution reserves the Federation, since 1947, the power to legislate on gaming with bets and draws.

Source: GMB / e-consulta.com