Bolivia’s newly inaugurated president Rodrigo Paz has introduced a package of tax reforms that includes major changes for the gambling sector. One of the key measures will be the abolition of the national gambling tax.
Paz announced that his government will prepare a set of bills to eliminate the gambling tax as part of a broader fiscal reform aimed at simplifying domestic taxation, improving collection efficiency, and strengthening investor confidence.
The main goal of the initiative is to attract new capital and put Bolivia’s economy — currently experiencing one of the most severe crises in the region (excluding Venezuela) — on a path toward sustainable growth.
Speaking in Cochabamba, the president emphasized that the plan includes abolishing the gambling tax, the tax on financial transactions, the levy on corporate promotional activities, as well as the wealth tax. According to government estimates, these taxes generate less than 1% of budget revenue while costing the state too much to administer.
“These taxes are ineffective and provide almost no benefit, yet they hinder investment. Eliminating them is a step toward efficiency, transparency, and restoring confidence in Bolivia’s economy,” Paz said.
Bolivia’s Minister of Economy and Finance, José Gabriel Espinoza, added that the government’s 10-year strategy is focused on simplifying the tax code, reducing imbalances, and reallocating resources toward production and job creation.
“We must remove inefficient taxes, such as the gambling levy, and direct resources toward employment, investment, and innovation,” the minister stressed.
The country’s gambling regulator, Autoridad de Fiscalización del Juego (AJ), has not yet commented on the initiative. Experts, however, do not expect any significant short-term impact on the budget, as Bolivia’s licensed gambling market is extremely small.
Currently, only one casino in Santa Cruz de la Sierra holds an official license. Most gambling activity, especially in the online sector, operates outside the legal framework, effectively eliminating its taxable base.
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