Ireland to drop 2% turnover tax for favoured two-tier approach
The Irish Independent has this weekend reported that the Dáil Éireann will move to present a two-tiered betting tax plan to the European Commission for EU-wide regulatory approval.
Following extensive industry consultations, the Irish government is reported to be dropping its formerly approved ‘2% turnover betting tax’, moving towards a more favourable dual tax system differentiating between retail and digital betting operations.
Undertaking amendments, the Irish government will implement a ‘20% tax on gross profits’ for licensed digital incumbents, whilst traditional retail betting operators will be charged at a lower ‘10% tax on gross profits’.
Published last October by Ireland’s Minister of Finance Paschal Donohoe as a ‘Budget 2019’ key directive, the 2% turnover betting tax was widely criticised by all Irish industry stakeholders.
Warning the government of job losses, Irish retail betting leadership would describe the Ministry’s tax plan as ‘penal’, and ‘the end of the independent sector’ should it be passed into law.
Backed by Kerry province independent MP Michael Healy-Rae, last November Sharon Byrne, Chief Executive of the Irish Bookmakers Association (IBA), would propose an amended tax plan to the Dáil.
The IBA’s tax plan proposed introducing an alternative two-tier betting system, which it believes could generate the Irish government circa €25 million in tax revenues.
Source: SBC News
