A proposed 10 percent flat tax on gaming revenue in Ukraine has stirred criticism from a parliamentary committee that warns it could hurt state and local budgets. Gaming was only recently re-legalized after nearly 20 years on the sidelines.
The proposed tax would standardize rates for vertical wagers, i.e. wagers on single events. Some rates originally proposed were as high as 30 percent. The amended proposal also cancels a planned license fee hike on gaming.
Members of the Scientific and Expert Management Committee of the Rada (parliament) argue that lowering the rates will impact local government revenues while increasing the social impact of gambling. The rates, they say, should help pay for social impacts.
Existing law says that taxes that impact local budgets must be balanced by government subsidies. Critics point out that the current tax proposal has no provision for that.
