Lithuania Is Considering The Possibility Of Tax Changes For Ground Gambling Institutions

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July 7, 2022
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Lithuania IS Considering The Possibility of Tax Changes for Ground Gambling Institutions

The ministry of finance of lithuania made a bill in which it is proposed to change the method of calculating the tax for ground slot machines and desktop games. Instead of the current system of fixed board or automatic, the tax will be calculated on the basis of gross gaming income (ggr).

The bill offers an 18-percent rate of tax on slot machines and ggr board games. All other forms of gambling are already subject to tax on revenues from games.

The current system charges a fixed fee in the amount of 260 euros per monh per machine for slot machines category a (unlimited winnings), 130 euros per monh for category b (limited rates and winnings) and 2300 euros per monh for the game table.

The government stated the current system is regressive, since it means that the worse the operator works, the higher the effective tax rate as a perecentage of revenue.

The minister of finance gintare skyste said:

"We are seeing tax inequality in the gambling sector. Currently, gambling business pays a fixed fee, not a percentage of income received.
We need a clearer, universal tax system, more fair: in monhs with a higher turnover of the enterprise will pay more and lower. The new procedure will increase the transparency of the gambling business and will provide more fair taxation.

Last month, he approved the first reading of the bill allowed to licensees only online games in lithuania. It will make an end to the online operator requirement to have a ground presence or cooperate with the ground operator.

However, this proposal was criticized by the lithuanian special investigation service, which warned that in licenses for online gambling, preference is given to online operators and not terrestrial operators.

Source: focus gaming news

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