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Independent Alliance Minister John Halligan announced, that the Irish Government is set to double the gambling tax as part of next Tuesday’s budget, according to Government sources.
The IBA will increase the duty from 1% of turnover to 2% in next week’s Budget in a bid to secure around €50m for public spending. It has been suggested some of that money will fund problem gambling treatment.
Finance Minister Paschal Donohoe present a document, where foresees taxation on the gambling segment to be doubled in order to generate €50 million for state coffers. As they struggled to get their proposals to Donohoe, the gambling tax will represent a significant victory for the Independent Alliance for next year’s budget.
The IBA estimates that there have been around 500 betting shop cloures in the last 10 years with the loss of around 2,500 jobs. It said the market has stabilised of late, however “we remain extremely vulnerable to any changes in our cost base as overall staking levels remain under threat”. While the IBA believes the changes could be catastrophic, the proposed tax hike is less than the 2.5% rate sought by Horse Racing Ireland last year.
