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Irish Government to Double Gambling Tax in 2019
November 29, 2018 Jim Murphy
Around the same time last year, The Irish Government decided to keep the gambling tax at 1%. This time round, however, Ireland is ready for an increase.
The Government of Ireland has decided to change the gambling tax, raising it from 1% to 2% of turnover. The legislation was ed by the Dail and it will now be forwarded to the Upper House. The process will be finalized shorty…
…while the measure will come into effect starting January 1, 2019.
Time-Consuming Concession
The concession lasted 11 hours. It was quite dramatic and Finance Minister Paschal Donohoe had a special request. Namely, he wanted the report on the tax rise’s impact to be presented to the Finance Committee after the first quarter of 2019.
Those involved with the gambling industry in this country are dissatisfied with such measures. They claim that this increase, although it may seem insignificant…
…will have a negative effect on the entire sector!
Irish Bookmakers Association (IBA) has reported that with this increase, approximately 400 betting shops will shut down whereas 1,500 people will receive walking papers.
Not 100% Sure?
Despite the current tide and the high probability for this change to take place, a Department of Finance spokesperson said that there are still chances for further modifications.
“Minister Donohoe will continue to engage with the industry with the potential to look at the issue in the context of Budget 2020,” the spokesperson pointed out.
The Healy-Rae’s Amendment
In the meantime, the Healy-Rea’s amendment ed an alternative solution proposed by IBA. They suggested that…
…a 10% tax on gross profit for shops should be introduced while online operators will be submitted to a 20% tax.
According to the research, this is the best solution at the moment and a compromise as well. Firstly, the taxes collected by the authorities in Ireland would increase by €25 million! Secondly, the businesses could continue to offer their services and none would declare bankruptcy directly influenced by the decision.
IBA Chairperson Sharon Byren announced: “We are grateful the government have committed to doing a review early in 2019. This is critical as it will prove how a 100% increase is simply a tax on jobs and unsustainable. It cannot happen quick enough.”
Unrealistic Desires
The Irish government hopes that doubling the gambling tax will help them collect €50 million. However, not everyone agrees with forecast. The association claims that projected shop closures would put an end to that dream.
Meanwhile, the government wants to use the money collected for problem gambling treatment and the racing industry as well.
Strict Measures
Earlier this year, the president of Ireland, Michael D. Higgins called for a ban on gambling ments in sports. This came after Facebook and Google’s decision to ban such ads in this country.
Furthermore, the timing was perfect as he was preparing for the election held in October, which he won by a landslide.
The gambling industry in Ireland hasn’t been stable even when the gambling tax was only 1%. The reason for it are common regulatory changes and now that the tax is planned to get a boost to 2 percent, starting January 1, 2019…
…those providing gaming services have all the right to be worried.
Source:
“Irish gambling tax hike set for immediate review”, igamingbusiness.com, November 23, 2018.
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Bloody government! They are sucking up money and they are doing it just for kicks. It is better to have more shops and operators paying less and people working there then several places being ripped off.