Bulgarian parliament voted at first reading last Wednesday in favor of an increase in the tax rate on gambling activities from 10% to 12% as part of amendments to the Corporate Income Tax Act. Bulgaria Prime Minister, Boyko Borisov, says he wants a higher gambling tax to make up forth budget for not increasing the excise on alcohol.
Moreover, Bulgaria Prime Minister, Boyko Borisov requested that the gambling tax is raised to 15%, no tax on hard liquor, precisely the traditional Bulgarian brandy known as “rakia". On the contrary, The conservative party “Law, Order, Justice” (RZS) and the members of the Blue Coalition had proposed that the gambling tax be raised from its current 10% to 15%, arguing that this should be calculated on a profit basis.
On the same day, the Council of Ministers confirmed that it has accepted only the proposal to increase the tax to 12%, on the basis of turnover. Some of the other taxation actions passed were a quarterly tax on gambling and sports betting. The Bulgarian parliament voted at first reading on November 4, 2009 in favor of an increase in the tax rate on gambling activities from 10% to 12% as part of amendments to the Corporate Income Tax Act.
The latest taxes come into effect in January 2010 as part of a revised Corporate Income Tax Act.
The Bulgarian Association for Entertainment and Gambling Games, which had previously advised that tax augmentation, could be the ultimate damage to fighting gambling companies repeated its warning that the augmented taxation could lead to the collapse of the business, and possibility of 40,000 jobs to be lost and government incomes.
The Chair of the Parliamentary Budget Commission, Menda Stoyanova, declared her support for an increase in the tax on gambling, while the Blue Coalition and the Party for Order, Justice and Equality (RZS) proposed that this tax be increased to 15%. The members of the parliament additionally adopted the proposal of the Council of Ministers to reverse tax concessions for companies having large investments in agriculture, general production, the processing industry, high technologies and infrastructure.
Concessions in the amount of tax paid would be proportional to any donations made to the following Bulgarian organizations: Fund for Treatment of Children, Fund for Assisted Reproduction and Fund for Transplants. The Corporate Income Tax Act bill will now proceed to the mandatory second reading in Parliament.
Moreover, Bulgaria Prime Minister, Boyko Borisov requested that the gambling tax is raised to 15%, no tax on hard liquor, precisely the traditional Bulgarian brandy known as “rakia". On the contrary, The conservative party “Law, Order, Justice” (RZS) and the members of the Blue Coalition had proposed that the gambling tax be raised from its current 10% to 15%, arguing that this should be calculated on a profit basis.On the same day, the Council of Ministers confirmed that it has accepted only the proposal to increase the tax to 12%, on the basis of turnover. Some of the other taxation actions passed were a quarterly tax on gambling and sports betting. The Bulgarian parliament voted at first reading on November 4, 2009 in favor of an increase in the tax rate on gambling activities from 10% to 12% as part of amendments to the Corporate Income Tax Act.
The latest taxes come into effect in January 2010 as part of a revised Corporate Income Tax Act.
The Bulgarian Association for Entertainment and Gambling Games, which had previously advised that tax augmentation, could be the ultimate damage to fighting gambling companies repeated its warning that the augmented taxation could lead to the collapse of the business, and possibility of 40,000 jobs to be lost and government incomes.
The Chair of the Parliamentary Budget Commission, Menda Stoyanova, declared her support for an increase in the tax on gambling, while the Blue Coalition and the Party for Order, Justice and Equality (RZS) proposed that this tax be increased to 15%. The members of the parliament additionally adopted the proposal of the Council of Ministers to reverse tax concessions for companies having large investments in agriculture, general production, the processing industry, high technologies and infrastructure.
Concessions in the amount of tax paid would be proportional to any donations made to the following Bulgarian organizations: Fund for Treatment of Children, Fund for Assisted Reproduction and Fund for Transplants. The Corporate Income Tax Act bill will now proceed to the mandatory second reading in Parliament.
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