Online gambling, the new EU tax target?
The EU is considering a tax on online gambling profits to fund education and youth policies, addressing uneven taxation across member states.Summary
Victor Negrescu, Vice-President of the European Parliament, proposes a European-wide tax on online betting and gambling companies to generate funding for education, skills training, and youth policies. He argues that current taxation varies significantly across the EU—from 5% in Malta to 40% in Austria—creating unfair competition and encouraging companies to operate in more favorable jurisdictions. Industry turnover is estimated at €130 billion in 2022, potentially reaching €200 billion with a 5% annual growth rate. A 1% tax could generate “tens of billions” for the EU budget without directly impacting consumers or national budgets. Negrescu emphasizes the need for a unified fiscal and control framework to combat evasion and ensure fair competition, advocating for clear European rules, combating illegal activities, and directing the tax revenue specifically towards education and youth initiatives.
(Source：Ziarul Bursa)