BULGARIAN TAX CHANGES COULD PUT THOUSANDS OUT OF
WORK (Update)
6 November 2009
Industry is already reeling from the effects
of the global economic meltdown, says gambling
association
The successful first reading of a Bulgarian government
bill designed to hike gambling taxes up from 10 percent
to 12 percent (see previous InfoPowa report) has
triggered some dire warnings from industry associations,
with claims that up to 40 000 people could be put out of
work if the changes to the law are passed.
The
Sofia news agency reports that the Bulgarian Association
for Entertainment and Gambling Games has warned that the
industry could collapse under the burden of extra taxes.
According to the Association, instead of raising BGN
12 million of additional revenue, the tax increase is
actually going to reduce state revenue coming from
gambling because the industry has already seen a 40
percent slump over the economic crisis and will thus be
dealt a new blow.
The Association warned that
some 40 000 people of the 80 000 jobs in the gambling
sector might be made redundant as the industry starts to
struggle because of the combined effect of the world
economic crisis and the greater tax. It has calculated
that since the average salary in the sector is BGN 700,
the loss of 40 000 jobs would translate into the loss of
BGN 134 million in indirect taxes for the state budget.
This figure is said to disregard the potential closures
of gambling firms, smaller VAT and corporate tax
payments.
According to official data, the
Bulgarian gambling industry had a turnover of BGN 700
million in 2007, and of BGN 1 billion in 2008.
Online Casino News Courtesy of
Infopowa
More news here.
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