Fecoljuegos prepares differentiated tax proposal for Colombia’s gambling sector

Colombia's gambling federation Fecoljuegos is preparing a tax counterproposal to the Economic Rescue Law bill presented by the government. The proposal is under technical review and is to be presented to the Ministry of Finance and the economic commissions of Congress. Fecoljuegos has not publicly set the rates or percentages that the proposal will contain.

The federation wants the tax scheme to recognise the differences between online platforms and land-based venues. It also wants obligations to be proportionate to the conditions of each segment. According to the federation, the two segments differ substantially in their operating models and cost structures. The federation warned that a disproportionate rise in tax pressure could affect the sustainability of authorised companies, investment and formal employment.

Article 41 of the bill proposes applying the general 19% VAT rate to the operation of gambling, including online betting. For online betting, the calculation would be based on user deposits. For slot machines, gaming tables and bingo, the bill sets monthly bases expressed in tax value units (UVT). Traditional lotteries would be exempt.

Fecoljuegos president Evert Montero said the sector understands the need to contribute to the stability of public finances and remains willing to take part in the debate. Montero asked the authorities to listen to the industry's arguments and to allow a technical discussion on the impact of the new obligations. The federation said the industry has faced successive tax changes and, in its view, the taxes adopted under the previous government lacked sufficient technical justification. It also said the continuity of legal operators is tied to the funds the industry transfers to the health system.