PoC tax rate not set in stone, says RGA
Treasury ministers could yet amend proposed 15% gross profits tax, although change may not come until 2016
Government Treasury ministers have yet to fully commit to a point of consumption (PoC) tax rate of 15% and are still assessing the case for a lower levy, according to the Remote Gambling Association (RGA).
Despite August’s draft regulation including a provision for a 15% tax on all remote gaming revenues from UK customers commencing December 2014, RGA chief executive Clive Hawkswood told eGaming Review that the battle for a lower rate of tax hasn’t come to an end.
“A 15% tax rate is the message they are giving to everybody but they are considering our submissions which proposes a tax rate of no more than 10%,” Hawkswood said.
In September, accountancy giant KPMG released a RGA-commissioned report which concluded a tax rate of 15% could put operators out of business and instead proposed a levy of no more than 10%.
The RGA and a number of representatives from gaming operators have been in regular contact with the Treasury on this and a number of other issues relating PoC over the last few months and have been buoyed by ministers’ willingness to engage in discussion.
However, should the 15% rate remain in place for implementation next year, the Treasury has indicated its willingness to review the rate further down the line, although Hawkswood said this might not come soon enough.
“What they have told us is that they could look at it again after a year to see how the first 12 months pan out but we have informed them that a year may be too late and the damage caused irreversible,” he said.
The Gambling Commission estimated the UK remote gambling market to be worth more than £2bn per year and said a 15% levy would attract around £300m per year in additional tax revenues for the Treasury.