New taxes on online gambling and online betting will apply in Hungary, in order to decrease the public debt and stabilize the monetary situation.
Provided the difficult monetary situation in Hungary, Gyorgy Matolcsy, Hungary’s Finance Minister, has proposed taxing ways on domains that are considered to attract luxury spending, such as online gambling.
As the Minister stated, taxes on gambling, alcohol and cigarette will increase by certain percent as they are thought as not being the most aspects in the lives of citizens. This way, the state is trying to stop the expenses that are not necessary.
Like many EU countries, Hungary is experiencing slow growth recently. A series of measure has been considered by the government in order to cover for a gap of $483.5 in its central budget for 2011. The new taxes to be imposed are expected to reduce the public debt from 77% to 73% after the next few months.
Matolcsy’s decision is backed up by the Prime Minister Viktor Orban, who reveals that a tax on all fatty, salty and sugary foods has been applied and it is expected to generate around €70 millions per year for the government. Considering Minister’s Matolcsy choice as based on good reasons, Orban states that online gambling is one of the targeted fields to be put under tax increment.
Also the Finance Minister stated that besides the tax increment on gaming venues, the government will apply a new tax on online betting next year, after a parliamentary committee has thought of new ideas. The concept of taxing online gambling has been taken into consideration. However, it is not yet known how soon it will be put in practice. The tax increment on gaming machines will happen sooner, before the end of 2011.