Bolivia’s new government has announced plans to scrap both the wealth tax and the gambling tax as part of a broader pro-market shift aimed at simplifying the country’s fiscal system and attracting investment.
President Rodrigo Paz Pereira, who took office in November 2025, has proposed eliminating four low-yield taxes, including the levy on high net-worth individuals, the gambling tax, a tax on financial transactions and a charge on promotional campaigns. According to the Ministry of Economy, all four together account for less than 1% of total tax revenue but are seen as disproportionately harmful to formal business activity and capital formation.
The move comes alongside a planned 30% cut in public spending for the 2026 budget, described by the administration as a necessary “shock therapy” to address a persistent fiscal deficit and chronic shortages of foreign currency. The government is also seeking several billion dollars in new financing from multilateral lenders to stabilise the economy and restore confidence among investors.
For the gambling sector, the immediate fiscal impact of scrapping the tax is expected to be modest. Bolivia’s regulated market is small, with just one licensed land-based casino and a limited legal framework for betting and online gaming. Much of the country’s gambling activity still occurs through unlicensed venues or offshore operators. However, industry observers say the reform sends a clear signal that the government is open to modernising its approach to the sector, potentially paving the way for future regulation of online gambling and a more competitive environment.
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The package of tax cuts now moves to Congress, where it will need legislative approval. If passed, Bolivia would become one of the few Latin American countries to simultaneously abolish both a wealth tax and a dedicated gambling tax, marking a sharp break from the previous administration’s more interventionist model.
