Dutch MP requests amendment to staggered tax hike in favour of single increase 

  • UM News
  • Posted 7 months ago
00:00

Dutch MP Chris Stoffer has requested an amendment to the proposed gradual increase in gambling tax in the Netherlands, instead advocating for a direct rise to the new rate of 37.8% from next January.

Stoffer, who is the leader of the conservative Reformed Political Party (SGP), has called for the rise from 30.5% to 37.8% to take place in a single tranche as opposed to the original plan of reaching that figure in two stages. 

In May, the Dutch coalition government, made up of the nationalist Party for Freedom, the People’s Party for Freedom and Democracy, the New Social Contract and the Farmer-Citizen Movement, published its budget, confirming the tax hikes.

The new figure of 37.8% would provide the state treasury with an additional €202m, according to the coalition.  

However, the initial plans outlined that the tax rate would rise from its current figure of 30.5% in two separate stages, with the first coming at the turn of the calendar year, rising to 34.2% in on 1 January 2025, before hitting 37.8% on 1 January 2026. 

Stoffer has since submitted an amendment on 8 October requesting a reverse to the two-stage plan, with a direct increase in gambling tax to the higher rate of 37.8% introduced on 1 January 2025. 

The SGP leader wants the original plan implemented as it is outlined in the ‘HOPE, COURAGE AND PRIDE’ coalition agreement.

In turn, the lower house (the House of Representatives) of the Netherlands parliament  will now vote on Stoffer’s amendment and, if it is met with a majority vote backing, the change will be implemented on the bill.  

This is not the first time Stoffer has submitted an amendment regarding gambling tax.

In 2023, the MP, alongside the People’s Party for Freedom and Democracy’s Silvio Erkens, pushed for gambling tax to be increased from 29.5% to 30.5%. 

After receiving majority backing in the House of Representatives, the current rate was implemented on 1 January 2024. 

The latest tax hikes, though yet to actually come into effect, are already having an impact on operators, with Flutter pulling its tombola brand from the Dutch market on 1 October. 

Confirming the news in mid-September, Flutter cited the planned increase in taxes as well as stricter market regulations as the main reasons behind its decision to withdraw tombola. 

The Netherlands Online Gambling Association (NOGA) has previously expressed concerns a hike in the nation’s tax rate will fuel black market activity, and has urged the government to meet with trade bodies to discuss the issue. 

NOGA claimed: “All facts and figures indicate that the tax increase will lead to a further erosion of the regulated supply.

“Tax revenues will therefore decrease. At the same time, an increase in illegal and therefore riskier gambling can be expected.  

“This is at the expense of the general policy objectives of the Dutch gambling policy, which are precisely aimed at consumer protection and the prevention of fraud, crime and gambling addiction.

“If this is abandoned, social costs will increase and therefore mean additional financial setbacks.”

The post Dutch MP requests amendment to staggered tax hike in favour of single increase  first appeared on EGR Intel.

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