Polish One-Armed Bandit Tax Postponed

by Ulrika Lomas, Tax-News.com, Brussels

12 January 2009

The Polish government has postponed its proposals to increase taxation on Poland’s 34,000 Amusement With Prize (AWP) machines; the 10% tax, which would have been levied on gamblers rather than the owner’s net takings, would have funded several national projects.

The tax was due to come into force on January 1, however the government agreed to to postpone it after protests from Poland’s 27 casinos, which are already subject to a tax of 45% levied on gambling establishments.

The tax would also have been technically difficult for casino owners to introduce, as it would have required significant changes to AWP machines.

In order to enforce the tax, the government said it would need to link all AWP machines directly to a government computer to ensure that tax was paid on all machine payouts, making the logistics of the tax even more complicated.

The Polish government has agreed to put the tax on hold until a less costly, and less administratively burdensome system can been found. A period of consultation will now follow.

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