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Poland Asked To End Discriminatory Taxation Of Foreign Lotteries

by Ulrika Lomas, Tax-News.com, Brussels

13 October 2006


The European Commission announced on Thursday that it has sent Poland a formal request to end discriminatory taxation of foreign lotteries.

Currently, winnings from lotteries in other Member States are subject in Poland to a higher taxation rate (19%-40%) than winnings from Polish lotteries, which are either exempted from tax or subject to a flat rate of 10%.

The Commission considers that this discrimination is contrary to the EC Treaty.

"Member States are free to set their own rules on betting and gambling" observed EU Taxation and Customs Commissioner, László Kovács. "But the EC Treaty requires that these rules are applied in the same way to domestic and foreign lotteries."

The request is in the form of a ‘reasoned opinion’ under Article 226 of the EC Treaty. If Poland does not reply satisfactorily within two months the Commission may refer the matter to the European Court of Justice.


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