PoC tax could cost 1,300 Gibraltar jobs
Former chief minister Sir Peter Caruana warns of huge economic impact introduction of new UK remote gaming tax could bring
Gibraltar’s economy would be hit hard by the proposed 15% UK Point of Consumption tax with 1,300 jobs under threat as a result, the territory’s former chief minister Sir Peter Caruana has warned.
Speaking to The Times, Caruana said that the proposed tax rate would have a huge impact and declared its timing “ which coincides with Spain imposing stricter border controls and other restrictions on the British Overseas Territory “ to be a “very unhappy coincidence”.
Research cited by Caruana and conducted by Bournemouth University economics professor John Fletcher in 2012 suggested that the Gibraltarian government could lose up to £20m in revenue as a result of the bill.
The Gibraltar Betting and Gaming Association (GBGA) has warned that up to 1,300 jobs “ around one third of those employed in the industry – could be lost as UK-facing companies operating from the territory look to restructure and downsize in order to swallow the looming tax hit.
The UK regulation will allow licensees to base staff and technology anywhere in the world, a move which GBGA commissioner Phill Brear told eGaming Review contradicts what other major licensing states in the EU and US have sought to enforce.
“As recent and current licensing failures show, thin, long distance regulation encourages abuse of the licensing system,” Brear added.
The proposed bill reached the committee stage last week and was subject to heavy criticism, with GBGA chief executive Peter Howitt condemning it as “terrible” and “damaging”.