In comments made to the local press, the Superintendent of the National Tax Authority (SENIAT) announced that lottery companies would pay between 60 billion and 70 billion bolivares (US$22million to US$25.5 million) in taxes in 2007, starting in May. Jose Vielma Mora added that at the same time the collection of gaming taxes would be refined by the creation of a regulation in the gaming law.

When consulted about the Tax Law bill for the gaming sector, awaiting its second reading in the Venezuelan Parliament, the Superintendent said that SENIAT ‘could not choke the taxpayer’. The bill proposes four gaming sectors: horseracing; lotteries and bingos; slot machines; and casinos. The clauses establishing the increase in tax quotas for bingos, casinos and slot machines are still under evaluation, according to the Superintendent, because at present some taxes are high and others too low.

The legal text proposed in the bill indicates a prohibitive increase on tax paid for slot machines – between 200 and 300 tax units (Unidades Tributarias) compared to the 10 paid at the moment. The head of SENIAT expressed his opinion: “The increase is very, very high. The law was passed at the first reading but will have a second reading. One shouldn’t go too far.” His comment could indicate that the administration will act responsibly and does not intend to eliminate slots activity.

Liliana Hernandez, ex delegate of the National Assembly’s Financial Commission, has called for an economic impact study to determine slot machine productivity and average casino income and winnings. She indicated that it was only on the basis of these findings that taxation levels should be set. Her comments, and those of the head of SENIAT, give a measure of hope that the Venezuelan administration will not opt for a tax of between US$2,454 and US$3,681 per day for each slot machine, as suggested at present in the proposed gaming bill. (E-09.25.06)

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