UK raises tax on remote gambling to 21%
British Chancellor Philip Hammond confirmed that the tax on remote gambling will increase from 15 to 21% from October 2019.
Representing the budget for the autumn of 2018 in the House of Commons, Hammond said that the increase is necessary due to the need to compensate for the loss of income because of the government reducing the maximum FOBT rates.
In May, the country's leadership accepted recommendations of the Gambling Commission to reduce FOBT rates from £100 to £2. Initially it was assumed that the innovations would come into force in April 2019, but the implementation of the plans was postponed until October 2019.
Hammond was expected to report a tax increase of up to 20–25%.
“Taking into account that the increase in the tax on remote gambling to 25% was discussed, the figure of 21% is encouraging,” - said Clive Hawkswood, chairman of the Remote Gambling Association (RGA). - The main thing is the time that we managed to win. Six months is enough time to adapt the market to new realities.”
John White, general manager of the BACTA Entertainment Trade Group, also responded positively to the news. According to him, the organization is pleased that the government has finally decided on the timing.
“Despite the disappointment that accompanied the hesitant steps of the government, we are pleased with the final result and the period for correcting the anomaly with the FOBT rates,” - concluded White.
Recall that, according to experts at First Gaming, the UK has the highest annual income from online gambling in Europe.
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