The question about the disputable Point of Consumption tax is back on the agenda and today the legal battle is going to continue. The Gibraltar Betting and Gaming Association has submitted a legal bid aiming at making the implementation of the Point of Consumption tax invalid.
Back in December 2014, UK gambling regulators opted for validating the 15% tax despite the fierce opposition that decision met and the heated disputes it was a subject to.
Anyway, after a judicial review that lasted three days, the legal battle continues and within a few hours the outcome is expected to be publicly revealed.
During the court hearing that is supposed to take place at the Royal Courts of Justice, the arguments of the affected sides will be heard. The Gibraltar Betting and Gaming Association claims that the above mentioned tax is not compatible with Article 56 of European law. In addition, it violates the free movement between European member states.
Representatives of the UK Treasury revealed that they were going to support their decision related to the implementation of PoC with convincing arguments. However, the estimates show that the UK-based operators will have to pay £300 million annually.
The spokesperson of the UK Treasury announced that UK regulators are absolutely convinced that there was nothing discriminatory or unlawful about the Point of Consumption tax.
Mr. Justice Charles will be in charge of today’s hearing. As for the GBGA, its team of supporters will be the same as last year’s. Those who keep themselves informed about the Point of Consumption tax issues know that back in 2014, the Association opposed the implementation of the tax but apparently the efforts made were insufficient.
According to GBGA members, the aforementioned 15% tax was really unfavorable to the UK gambling sector. Although operators are supposed to pay it, they have to make up for their losses and therefore, increase the price of their products and services. This action would lead to an increased percentage of players willing to place their bets on the unregulated markets.
The arguments of GBGA were regarded as significant but the majority of people with knowledge on the matter say that abolishing a tax that has already been valid for four months is a challenging mission.
The Chief Executive of GBGA, Peter Howitt, said that the litigation consists of many details that are said to be essential and need to be promptly dealt with.
