Kommersant: The Ministry of Finance proposes to increase taxes on gambling
Aug 31st, 2009 | By admin | Category: Main NewsOwners gambling after its legalization in Ukraine to limit the placement of facilities and significantly increase their taxes. The bill, published late last week, the Finance Ministry proposes to increase them to 15% of financial turnover. Market participants believe the Finance Ministry proposal to be incompatible with lucrative work.
After the ban on gambling business in Ukraine, the Cabinet was requested during the three months to develop a bill that defines the area to accommodate the gambling establishments. Last Thursday the Ministry of Finance published the concept of the bill On state regulation of activities in the field of gambling, which will be used in the development of the government bill on gambling zones.
Finance Ministry proposes to issue licenses to conduct gambling business for an indefinite period, rather than five years as previously. But if you are still a five-year license cost 150 thousand euro, now the license fee to the organization and conduct of gambling in casinos and slot machine halls are encouraged to establish at the level of 2 million UAH, for betting shops and online gambling - 1 million UAH, production and trade of gambling equipment - 5 million UAH. Is also proposed to introduce an annual charge for each game room - 100 thousand UAH for casinos and slot halls, and 50 thousand UAH - for the bookmaker.
The most radical proposal of the Ministry of Finance is a tax increase: from 25% of the profit minus the cost of patents to 15% - from traffic. In addition, operators oblige to buy play equipment in the property. So, now the cost of a slot machine is about 4 thousand UAH, a table with roulette - 192 ths. Get your comment in the Finance Ministry failed.
Government's decision to increase the tax associated with the intent to compensate for the missing as a result of the prohibition of gambling funds in local budgets, said a senior economist at the centerof CASE-Ukraine Vladimir Dubrovsky. Chairman of the Ukrainian Association of Gambling Business Gregory Tripulsky previously noted that the city budget of Odessa, for example, would wipe this year, 32 million UAH, which were expected to gain from granting patents on the conduct of gambling. It is believed that the services were adversely affected by gambling on society - as well as alcohol and tobacco. Obviously, this explains the establishment of such a high tax, - added Mr. Dubrovsky.
However, part of the initiatives supported by the Ministry of Finance statements. The proposal to grant licenses for an unlimited time, of course, simplifies the work of business. But until then, until we will know where gambling establishments would be located, to predict the effect of adopting such a law is impossible, - says Mr. Tripulsky.
agrees with him chairman of the Union of Entrepreneurs of gambling Alexander Boyko. Prior to the ban gambling companies out of tax of approximately 12-13% of turnover. But the Government's decision to make business in spetszony companies' turnover will decline by 5-10 times, no one would work under such conditions, - he said.
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