Latvian parliamnent approved amendments to the Law on Lotteries and Gambling Fee and Tax in the final reading, including a provision that changes the proportions of revenue from the tax between the state budget and municipal budgets.
The Finance Ministry previously said that the objective of the amendments was to shift the tax burden from labor to consumption and capital, balance out tax rates with gaming companies’ increasing turnover, and increase budget revenue.
At the moment, 75 percent of revenue from gambling goes to the state budget and 25 percent to the budget of the local government where the gaming venue is located. The coalition, while looking for sources to increase financing for healthcare, proposed changing the proportions, and the bill that Saeima passed in the final reading today stipulates that 95 percent of revenue from gambling tax goes to the state budget, and only 5 percent to the budget of the local government where the gaming venue is located.
The amendments also stipulate that the annual gambling tax rate on each roulette, card game, dice game table will increase from EUR 23,400 to EUR 28,080 next year.
The annual gambling tax rate on each gaming machine will increase from EUR 4,164 to EUR 5,172.