Dutch MPs propose increasing gambling tax

Two Dutch MPs have published an amendment that would see the percentage of gambling tax on operators rise by a full percentage point to 30.5 percent.

If adopted, this would amend article 5, paragraph 1, of the Dutch Gambling Tax Act.

Freedom and Democracy People’s Party MP Silvio Erkens and Reformist Political Party MP Chris Stoffer introduced the amendment yesterday (24 October).

Proposed increase in gambling tax It focuses on a rule that would impose a 16.2% excise tax increase on alcohol. This will come into force from January 1, 2024. MPs estimate this will cost €74m (£64.5m/$78.2m) and “almost halve this increase in excise duty”.

In the amendment, lawmakers state that the alcohol excise tax increase will affect small businesses and their employees. They also claim that the amount of money to be raised “is likely to be disappointing in practice”.

In addition to gambling, it was also suggested to increase the SCT on tobacco. MPs estimate that the increase in gambling tax will cover €26 million of the total cost of the alcohol tax increase. Tobacco will cover the remaining 48 million Euros.

Proposed increase in gambling tax

Regarding the gambling tax increase, the amendment states that the popularity of online gambling has “led to a significant increase in the turnover of online gambling companies”.

Stoffer and Erkens said they wanted to apply the increase only to online gambling. However, they were unable to do this because the gambling tax does not currently differ across game types. The Netherlands’ online gambling market became operational in October 2021, following the adoption and entry into force of the much-delayed Remote Gambling Act (KOA).

They called on the Dutch government to implement the change by 2025.

“That being the case, the additional revenue from the increase in gambling tax as a result of this amendment could be achieved by taxing online gambling companies more heavily to the extent that the increase is recoverable for all other taxpayers,” the amendment states. reader.

Earlier this month, an online gambling report by regulator Kanspelautoriteit (KSA) reported a slowdown in market growth in the Netherlands. KSA president René Jansen, who will resign after his current term expires, said this meant “the market is developing as expected”.

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