Fecolgamesa union of gambling operators, warns about the implications that the implementation of a VAT for online games, as proposed by the Minister of Finance Diego Guevara, within the framework of the Decree of internal commotion due to the Catatumbo tragedy.
(Read: Internal commotion: the ABCs of the new measure adopted by the Petro government).
Although the decrees With the measures, the Treasury said that they would insist on the measure that was contemplated in the failed tax reform that collapsed in the Congress of the Republic.
“This measure would not only put the financial stability of a key sector for the digital economy at risk, but would also alter the balance contractual between the currently authorized companies and the State, compromising the model that has allowed the sustainable growth of this industry,” he noted, Evert Monteropresident of the union.
Also read: National Army launches offensive against the ELN in Catatumbo).
Games of chance.
In a statement they add that “the online games In Colombia it operates under strict regulation established by Coljuegos, which establishes the technical, legal and financial conditions for its operation. This model has been fundamental to guarantee the development, growth and sustainability of this economic activity, as well as the generation of income destined to finance the health system, while promoting the legality, transparency and formality of this industry. In the third quarter of 2024, online games contributed $231,343 million to the healthcare system. health of Colombians and generated 150,000 formal jobs, consolidating itself as a pillar of the digital transformation in the country.”
This is why, since Fecolgames The need is reiterated for each initiative aimed at increasing the tax burden of this sector to have as its starting point knowledge of the technical operating conditions of the game, its economic model, the conditions of the current concession contracts and the risks of any measure that may affect the stability of this economic activity. Likewise, it is essential that collection estimates for a new tax measure that impacts the business are made based on reliable figures and accurate projections.
(You can read: Where will the internal commotion decreed by the National Government apply?).
Due to the above, it is noted that taxing gaming operations with VAT on-line As has been proposed so far, it would represent an imbalance in the contractual balance in the concessions for the operation of online games, directly affecting the sustainability of the sector. “The current model already operates with limited margins, because around 97% of the bet is returned as rewards to the winners. playersoperating rights and administration expenses borne, leaving operators with limited net income to cover high operating costs. An additional tax would compromise the viability of the authorized companies and, therefore, the income destined for the State,” he said. Fecolgames.
