Czech Tax on Lotteries Discriminatory, EU Told
PRAGUE, Czech Republic — A Czech lottery company has told the European Commission that new tax rules discriminate against lotteries compared with other gambling products in violation of the European Union’s state aid rules, according to leaked documents seen by Law360 on Thursday.
The Czech Republic introduced a 35% tax rate on lotteries on Jan. 1, the same rate as video gambling terminals. However, a 23% rate still applies to other games of chance such as bingo, raffles and sports betting, and therefore constitutes an illegal subsidy for these products, lottery company Sazka told the commission.
In its complaint to the commission, the European Union’s executive branch, the company said lotteries are among the least harmful and addictive gambling products, making the higher tax rate unjustified.
A spokesperson for the Czech Finance Ministry said the ministry hadn’t yet seen the complaint, but that each EU member country is free to set its own tax policy for gambling.
SOURCE: Law360 (By Matt Thompson).Tags: Sazka, VLTs, Tax, EU