From Asojuegos and Fecoljuegos, they responded to the insinuations made by the Minister of Finance, Rocardo Bonilla, and explained that they only seek to present their stance and have it heard and analyzed by the parliamentarians.
Colombia.- Asojuegos and Fecoljuegos, unions representing the main companies in the gambling industry in Colombia, categorically rejected the insinuations made by the Minister of Finance, Ricardo Bonilla, about alleged pressures on the Congress of the Republic during the discussion of the financing law project.
“Our purpose has been to inform transparently and substantiatedly about the serious economic and social impacts that these measures would generate in a formal and regulated industry. If this is considered pressure, then we are seeing our right to participate democratically and to expose the disastrous consequences that this change of rules would bring, not only for our sector but also for the contributions to the health of Colombians,” stated Juan Carlos Restrepo, president of Asojuegos.
For his part, Evert Montero, president of Fecoljuegos, highlighted the efforts made by the unions to clarify the functioning of the activity: “We have carried out a series of actions before the National Government, including meetings with the DIAN and with the Third Commission of the Chamber of Representatives, to explain in detail the mathematical and economic model of the sector. Our goal has been to correct erroneous figures that do not reflect the reality of the industry and contribute to informed decision-making”.
For Restrepo and Montero, the lack of openness and understanding by some government entities is concerning and regrettable. “Despite our efforts, there is an evident lack of knowledge about the activity, which has prevented the establishment of working tables where we can demonstrate, in greater depth, the impact that these tax burdens would imply for the sector,” Montero stated.
According to the representatives of these two unions, there are three concerns regarding the reform that is being proposed. The first is about the tax on the online gaming sector with VAT, the second is the increase in the presumptive VAT rate in localized games, and the differentiated occasional winnings rate of 25 percent.
“The proposal to apply VAT to the online gaming segment would severely affect its competitiveness against platforms operating outside the Colombian jurisdiction. While globally players receive a return between 90 and 96 percent, in the country this range would decrease to levels between 72 and 78 percent, encouraging migration to foreign platforms. This segment, regulated since 2016, has contributed more than COP 1.2bn (USD 272m) to the health system and has energized industries such as sports and media,” Evert Montero pointed out.
See also: Fecoljuegos rejects the VAT proposal for sports betting platforms in Colombia
He also highlighted that doubling the presumptive VAT rate from 20 UVT to 40 UVT would represent a setback in the formalization of the sector. “In the last five years, about 40,000 machines that operated illegally have been legalized. This tax change would jeopardize these achievements”.
