The Peruvian government has been granted permission to apply a ‘selective consumption tax’ to all forms of online gambling.
Peru’s National Superintendency of Customs and Tax Administration, known as SUNAT, has communicated a decision to the Executive Branch regarding gambling taxes as part of a comprehensive update to the country’s gambling regulations spearheaded by President Dina Boluarte.
In September, Congress approved the final version of Bill-2070/2021, which introduces a direct 10% tax on gross gaming revenues for online sports betting and casino gaming. However, President Boluarte later insisted on the inclusion of an additional 1% ‘excise tax’ on all online gambling activities, encompassing both licensed and unlicensed businesses as regulated by MINCETUR, Peru’s Ministry of Foreign Trade and Tourism.
SUNAT had to perform a technical assessment to ascertain if the additional excise tax could apply to both foreign and domestic enterprises. The conclusion was affirmative: the 1% excise tax could indeed be levied on online gambling transactions conducted by Peruvian citizens or residents, as determined by factors such as IP address, bank account information, credit card data, or mobile SIM card.
Starting January 1, 2025, the government will be able to implement the 1% excise tax on gambling enterprises. Alongside, in response to Boluarte’s proposals, MINCETUR was directed to significantly increase licensing fees to S/ 3 million (€750,000) for all online gambling operators, whether new or existing, as stated [here](https://sbcnews.co.uk/southamerica/2024/02/20/peru-gambling-president/).
The introduction of this additional 1% excise tax has raised considerable alarm among online gaming professionals. Gonzalo Pérez, CEO of Apuesta Total, shared his apprehensions on social media, highlighting the requirement for platform adjustments to align with new regulations. Such changes necessitate a lengthy re-certification and re-approval process by MINCETUR, estimated to take between 8 to 12 months, igniting fears about the tax being enforced prematurely and potentially being viewed as “confiscatory” during this period. Pérez underscored the industry’s dedication to stringent certification practices while urging the government to implement these changes sensibly to avoid revenue disruption.
Andrea Rossi, Commercial Director for South America at Betsson, echoed these concerns, suggesting that the tax demonstrates a “poor understanding of the industry” and warned about its detrimental effects on directing players towards the regulated market. He emphasized the necessity of considering the broader market consequences in terms of growth and stability.
As the January 2025 enforcement date nears, industry representatives are urging governmental discussions to align the tax revenue objectives with maintaining a viable and regulated online gaming environment that encourages sustainable long-term expansion.