Croatian FM Tables Gambling Tax Proposals

by Lorys Charalambous, Tax-News.com, Cyprus

09 July 2009

Croatian Finance Minister Ivan Suker has announced that a tax will be introduced on gambling winnings and an annual fee levied on gambling service providers to generate around HRK350m (USD66.35m) annually for government coffers.

The tax of between 15 and 20% will be imposed on all gambling, including lottery winnings exceeding HRK40,000 (USD7,600). Value-Added Tax on lottery tickets will effectively be replaced with the imposition of a new 10% tax based on the selling price of the ticket.

Those providing gambling services will now be subject to an annual fee of HRK1m (USD190,000) while those operating internet-based gambling services from Croatia will be obliged to pay a HRK3m fee.

In order to mitigate the social effects of gambling in Croatia, the bill will also encourage managers of gambling establishments to ban those deemed to be addicted.

The proposals must now gain approval from the Croatian parliament.

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