Georgia PM Announced Some Significant Changes to the Taxation and Regulation of the Gambling Industry
GEORGIA (November 7, 2023) — According to local media outlets the Prime Minister of Georgia, Irakli Garibashvili, has announced some significant changes to the taxation and regulation of the gambling industry in the country during a government meeting on November 3.
The profit tax for the gambling industry will reportedly be raised from the current 10% to 15%. This means that gambling operators would pay a higher percentage of their profits as taxes to the government.
According to the local media there will be a change in the tax rate for withdrawing money from gambling winnings. Previously, citizens paid a 2% tax on their income when withdrawing their winnings. Under the new initiative, this tax will be increased to 5%, meaning that individuals will pay a higher percentage of their gambling winnings as taxes when they cash out.
Prime Minister Garibashvili also expressed concern about the increasing turnover of the gambling business in Georgia. He mentioned that in 2022, the total turnover of the gambling industry had risen from 48 billion GEL to 52 billion GEL. This growth is seen as problematic, as it suggests that a significant number of citizens are involved in gambling.
The Prime Minister mentioned that in the past, the government had taken steps to address the issue of excessive gambling. These measures included banning gambling advertising and restricting the right to gamble for citizens under the age of 25.
According to Prime Minister Garibashvili, the changes in taxation and regulation of the gambling industry are expected to contribute an additional 400 million GEL to the government’s budget.
These changes are aimed at both increasing government revenue and curbing the growth of the gambling industry to address social concerns related to gambling addiction and excessive participation.
However, such policies are subject to legislative approval and may evolve over time.
SOURCE: LI.Tags: Georgia, taxation and regulation, Gambling Industry