The intention of the State is to tax operators that evade paying any dues through recourse to the law. All companies must pay income tax, under penalty of incarceration for company officials for evasion. By abolishing the contentious gaming tax the government hopes to ensure that all gaming companies must pay additional taxes. However, the MINCETUR gaming director, Manuel Antonio San Roman Benavente, is unsure that this will work in practice as companies can claim many expenses and could reduce tax due to a minimum.

The gaming director was quoted as saying he knew of no groups lobbying for lower taxes for gaming operators, as had been claimed by the legislator Carlos Bruce. He also urged that more should be done to encourage those operating gaming machines informally to regularize their situation, as the rules were too demanding at present. It is estimated that out of around 640 gaming companies only 45 are formally licensed with another 20 in the process of being licensed.

It is the first time that a director of gaming regulation in Peru has proposed formalizing the status of gaming operators that have been allowed to do business unregulated and untaxed by past changes to gambling laws, with the subsequent damaging effect on the progress of the Peruvian gaming industry. Perhaps the recommendations of San Roman Benavente will be adopted and bring about a future improvement.

Printer friendly version

Email this article to a friend