Albania’s president rejects gambling tax changes

The president considers that the amendments fail to discourage gambling in the country.

Albania.- Ilir Meta, president of Albania, has turned down legal changes to the gambling tax as he exercised his suspensive veto. He considers that the proposed amendments lowers the tax burden from operators, and fail to discourage gambling, which is a booming business in the country.

The president’s office said that the legal changes approved in early July reduce the gambling tax to 15 per cent of gross earnings compared to a current 15 per cent turnover rate and significantly cuts the tax burden on operators, Tirana Times reported.

Meta considers that reducing the tax burden would complicate the country’s sustainable economic and social development. He also argues that the legal changes actually promote gambling: “The implementation of the legal changes would only benefit gambling businesses at a time when the expected effects on the state budget or household economy are negative. Article 6 of the law also runs counter to meeting Albania’s social targets and legislation in force discouraging gambling activities and increases the probability of negative phenomena on Albanian households,” he said.

“The gambling business model does not produce added value for the society, on the contrary, the expansion of this industry brings potential risk that impoverish Albanian households and cause social drama,” adds the president’s press office. “The promotion of this business model through an easier tax regime has a negative effect on the state budget, is harmful and no productive at all for the Albanian economy, is not based on sustainable socio-economic arguments and does not guarantee a healthy development of the Albanian society,” it continues.

The Finance Ministry explained that the proposed amendments don’t ease the burden, but only unify the 15 per cent tax rate on the gambling industry, which for example, the national lottery operator was applied at a lower 10 per cent.

“There is no change to the gambling law and no relaxation as far as gambling taxation is concerned, on the contrary, there is unification for all gambling categories. If the changes turned down by the president, don’t become effective, then we will have differentiated treatment for a market operator that will continue to be taxed at 10 per cent,” the finance ministry said in a statement.