Verkhovna Rada, Ukraine’s unicameral parliament, has supported bill 2713-D in its first reading. The bill was voted in favour by 252 Members of Parliament on Thursday.
Bill 2713-D, that was supported by 252 Members of Parliament on Thursday, proposes to reduce taxes for gambling and lotteries organizers, with the annual fee for online casinos set at $200,000 a year.
Meanwhile, as stated, “$200,000 a year online casino fee is one of the highest in Europe," the bill recommends that there is a set tax rate in place.
A sat rate would be based on income or gross gaming revenue, and it would be received by the online casinos and online poker games organizers at 10%.
Those operating gambling in land-based casinos, as well as slot machines, would be taxed at 12.5%, while those issuing lotteries 10%. Bookmakers are expected to meet the tax rate 5%.
Apart from the set rates, a basic income tax rate will have a standing in this new organization, with gambling organizers having to pay it regularly. Nonetheless, winnings in gambling and lotteries will be exempt from personal income tax and military tax.
Ukraine Opens Doors for Gambling
When last July the Verkhovna Rada legalized gambling in Ukraine, the lawmakers emphasized that the legalization of such businesses is expected to bring in $150m to $200m in tax revenue.
However, in May this year, Ukrainian lawmakers got a warning by a Parliamentary committee to not reduce taxes.
A suitable tax policy must be set in place to encourage operators to contribute to social programs addressing the negative impact of gambling, and, consequently, minimize problem gambling.
As it was explained, “The Scientific and Expert Management Committee of the Ukraine Parliament said there was not enough evidence to justify a decrease in gambling tax”.
It was further said that a suitable tax policy must be set in place to encourage operators to contribute to social programs addressing the negative impact of gambling, and, consequently, minimize problem gambling.