LATVIA

Latvian government supports gambling tax hike

Latvia’s Cabinet of Ministers has supported Finance Ministry’s proposed amendments to the Law on Lotteries and Gambling Fee and Tax, providing for an increase of gambling tax next year.

The existing tax rate for gambling machines for each gambling machine’s location per calendar year is is 4 164. Starting with next year, however, it will be EUR 6 000.

Additionally, law amendments will increase gambling tax rate for roulette, cards and dice games for every table per calendar year from EUR 23 400 to EUR 28 080.

It is also planned to change gambling tax revenue division between state and municipal budgets, providing gambling tax revenue – 90% for the state budget and 10% to budgets of municipalities in which gambling is organized. The current ratio is 75% for the state budget and 25% for municipal budgets.

Gambling in Latvia is provided by 15 gambling organizers.

Raising the tax rate by 44% or EUR 6 000 per gambling machines, it is expected the number of gambling machine numbers to decline 5% – from 8 680 to 8 247 per year. The fiscal influence from tax gambling is predicted to be EUR 13.338 million.

The current tax rate for roulette, card and dice game per table is EUR 23 400 a year. Raising the rate by 20% or EUR 28 080 per table is expected to reduce the number of tables by 12.9% – from 70 tables in 2020 to 61 a year. This means the fiscal influence on gambling tax revenue is expected to be EUR 75 000 a year.

The final decision on law amendments will be made by the Saeima.

Source: https://bnn-news.com

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