Irish bookies lobby to change betting tax plan

Bookmakers from Ireland are backing a proposal that would tax profits instead of sales.

Ireland.- After Ireland’s Minister for Finance announced that betting tax is set to increase from 1% to 2% in 2019, bookmakers are looking for alternatives to protect their businesses. Now, a number of bookies are lobbying for an alternative plan where the betting tax would be levied on gross profits instead of turnover. The parliament is expected to debate the tax amendment this week.

The alternative plan, proposed by TD Michael Healy-Rae, establishes that shops would need to pay a 10% tax on profits, while the number would double for online operators to 20%. The proposed amendment is expected to be debated tonight, but it could be delayed until later this week.

It is believed that this new proposal is supported by several politicians, as it would generate €25 million and protect thousands of jobs. After the announcement from Ireland’s Minister for Finance Paschal Donohoe, a chairperson from the Irish Bookmakers Association said that they predicted that there would be 300 shops closed when the tax is enacted and the loss of at least 1,500 jobs.

Moreover, a study revealed that the Exchequer of Ireland could lose €35 million from the proposed hike. Anthony Foley, the report author, explained that the implementation of the new betting tax doesn’t consider the possible negative effects on the existing tax taken from the sector in such as income tax, USC and PRSI and increased expenditure from unemployment due to job losses.