The budget of Ukraine has a catastrophic deficit in tax revenues from the gambling business

The budget of Ukraine has a catastrophic deficit in tax revenues from the gambling business

The gambling services market in Ukraine continues its development and gradual legalization. Official representatives of the branch and many politicians assert that this sphere will become one of the locomotives of the state economy growth in the nearest years. According to their information, Ukrainian gambling is already an important part of the treasury.

However, statistics show a less positive picture. If you believe the information presented in several media, since the beginning of this year, Ukraine has received from the sale of gaming licenses about 900 million hryvnia (about 2.4 billion rubles). At the end of 2020, the first deputy head of the advisory and expert council of the Commission on Regulation of Gambling and Lotteries (KRAIL) of Ukraine Boris Baum at a press conference said that the draft tax charges for 2021 included a figure of 7.4 billion UAH from gambling businesses.

“We are forced to state that the amount of taxes from the industry of gambling entertainment, unfortunately, depends on the reform of the relevant laws. Now that the Tax Code has a number of problems, we are unable to achieve the intended amount of revenue from market representatives. This year it is already impossible to realize the figures presented,” admitted Boris Baum.

Moreover, profile information resources, which closely follow the work of the CRAIL, have quite different data. Thus, as of July 13, 2021, the regulator issued a total of 26 gambling licenses. For them, the state budget received 636 million hryvnia (about 1.7 billion rubles), which is almost 6.8 billion hryvnia below the forecast.

Such disappointing statistics arose due to the fact that the Verkhovna Rada of Ukraine for several months now can not pass amendments to the bill 2713-d, which regulates taxes for local gambling business. Now the fiscal rate for gambling operators in Ukraine varies from 10% to 30%. However, the new draft law provides for a single tax of 10% of companies’ turnover.

According to a number of MPs, this document will have a negative impact on revenues of Ukrainian treasury, and its rules only contribute to the restoration of the “shadow” market.

Recall that Ukraine has officially launched a register of citizens who have restricted access to the sphere of gambling entertainment.

Sarah Richardson

Hi! My name is Sarah Richardson and I am a gambling analyst, I do analytics and forecasting from more than 10 years, I write interesting articles and express my opinion in gambling and betting directions. As well as reviews of different games. As well as application testing, sports forecasts and much more. Read my blog. I share my tips, observations and thoughts.