Czech Republic raises taxes on gambling
The government of the Czech Republic has decided to increase gambling taxes, effective from January 1, 2020.
Czech Republic.- Czech Finance Minister Alena Schillerová announced on Tuesday that the government approved a taxation package that includes gambling. This is part of a measure to counter-attack the increasing living standards in the country.
“The government has just approved a long-awaited Tariff package for tobacco, hard alcohol, and gambling taxation by the Ministry of Health and the National Drug Coordinator. It responds to the increase in their availability as a result of rising living standards in the Czech Republic,” said Schillerová on social media.
The changes, effective from January 1, 2020, come from a recommendation made years ago by the Health Ministry. International bodies like the World Health Organisation and the Organisation for Economic Co-operation and Development (OECD) also recommended it.
This measure aims to bring taxes of certain sectors, like gambling, into line with recent changes in the Czech economy. “Our country has made considerable progress in combating addiction in recent years. We all remember the weed-filled housing estate or the smoky restaurants and public areas. Even in 2012, there were 75,000 vending machines in our country and 7,500 gaming rooms,” explained the Finance Minister.
“The increase in excise duties not only reduces the availability of addictive substances but also raises funds to support prevention projects,” she added.
The increase in gambling taxes in Czech Republic
The government’s plan includes a raise from the current 23% to 25% for a partial tax on odds betting. They also apply to totalizator games, raffles and small-scale tournaments. It also proposes an increase on lottery, bingo and live game taxes from 23% to 30%. The government will unveil more details in the upcoming days.
The government is pleased with the fact that the changes would bring approximately €385 million a year for 2020-2021. On the other hand, trade bodies that represent bookmakers argue that tax increases on gambling in the Czech Republic would only lead to the expansion of the black market.
