Albanian President Ilir Meta vetoed earlier this week a bill calling for the introduction of significantly lower gambling taxes, local news outlet Tirana Times reports.
The legislative piece was approved by the ruling Socialist Party early last month. In general, the bill proposes a major reform in the way gambling operators serving local customers are taxed. Under the piece of legislation, operators would no longer be taxed at 15% on their annual turnover, but would instead have to pay a 15% tax on gross earnings. The bill defines gross earnings as the amount remaining after winnings are paid out to gamblers.
It now seems as an unlikely outcome, but if the bill succeeds in taking effect in its current form, it would also reduce the Austrian Lottery’s tax rate from a 10% tax on turnover to a 15% one on gross earnings. The Austrian Lottery was issued a license back in 2013 to operate Albania’s National Lottery. The Austrian company was selected as a wining bidder among competitors from the Czech Republic, Italy, and Cyprus.
Commenting on his decision to veto the piece of legislation, President Meta has said that it would affect the country’s budget and would harm Albanian economy. The top legislator has further pointed out that the bill was not based on “sustainable socio-economic arguments” and that it could not guarantee the “healthy development of the Albanian society.”
According to President Meta, a number of articles contained in the bill were running counter to the country’s strategy to limit the proliferation of gambling among residents, particularly vulnerable people, and that instead of producing any positive effect reduced taxes would result in a growth in the gambling industry that would, in turn, pose risks that could “impoverish Albanian households.”
Thriving Gambling Business amid Economic Struggles
Albanian gamblers have access to a number of gambling services and services, ranging from online casino gaming and sports betting to brick-and-mortar betting shops. At the same time, Albania is among Europe’s poorest countries. The Tirana Times reports that while the country’s gambling law, adopted several years ago, prohibits individuals under 21 from entering gambling premises, teenagers could often be seen at such facilities.
In 2013, lawmakers introduced measures aiming to curb illegal and socially irresponsible gambling services, but according to official data, the sector has been thriving over the past several years.
It is believed that Albanian gambling customers spent a record amount of ALL16.6 billion (€132 million), up 10% year-on-year. According to separate data from the Supreme State Audit, state authorities failed to collect the amount of ALL50 billion (€395 million) in the period between 2014 and 2016 as a result from repeated failures of the Gambling Supervisory Authority to collect fines from errant operators.
