RGA reacts to Italian tax proposals

RGA reacts to Italian tax proposals

Thursday, December 17, 2015
Clive Hawkswood said that the rates put forward are still too high

Italy’s proposed changes to online gambling tax would introduce rates that are still too high, according to the Remote Gambling Association (RGA).

Italian authorities have put forward plans for duties related to gross profits, with 18 per cent paid by retail, 20 per cent for online poker, casino and bingo, and 22 per cent for online betting.

The rates, which have been approved by the Italian Budget Committee and could now be passed by the Chamber of Committees before the end of the year, would replace a tax based on overall turnover, which was introduced in 2011 and is currently set at 3.5 per cent for online betting.

While RGA chief executive Clive Hawkswood said that change is needed, he told TotallyGaming.com that he does not agree with the rates. 

“We very much welcome the switch to a gross profits base for the tax,” he said. “It’s something we have been calling for since we submitted a tax report to the Italian government a few years ago. However, a rate of 22 per cent is higher than it should be.”

A KPMG report, commissioned by the RGA, said in 2012 that a tax based on turnover in Italy would lead to a reduction in demand and cause nationals to switch their gambling activity from onshore duty-paid providers to lower priced duty avoiding offshore providers.

It also said that, due to increased competition and market growth, a gross profits tax on sports betting of between 15-16.5 per cent would raise the same tax revenues as the current turnover tax rates.

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