Remote Gambling Association Report Details Better Plan for Cyprus

Published Monday, March 05, 2012 -

A recent report has been published that indicates the findings of study commissioned by the Remote Gambling Association. The KMPG study has concluded that a taxation regime for internet wagering that is based on a gross profits tax will result in better returns for the Cypriot government.

The study of Cyprus’s online gambling rules tested the effectiveness of the Cypriot government’s proposal to impose a three per cent turnover tax on online betting. The measures are to raise revenues to ensure the implementation of social responsibility policies to protect the punters of Cyprus.
The report stressed that that a gross profits tax is a more effective than a tax on the turnover. Some of the reasons given for the conclusion were outlined. A Gross Profit Tax would create an environment that more operators are willing to participate in thus taking the most advantage of the locally regulated market increasing revenues for the State. This type of tax policy would attract more responsible online gambling service providers to obtain licenses ensuring more punters in Cyprus to play on regulated web sites again to the advantage of both the government and patrons.

Presently the Cypriot government does not intend to regulate these products. CEO of the Remote Gambling Association, Clive Hawkswood, commented,  “The RGA believes that the partial opening of the Cypriot online gambling market  is a welcome step. However, by proposing a turnover tax regime the government is creating a huge and uncompetitive financial burden for potential licensees. There is no doubt that implementation of current proposals will see the newly regulated market fail, which will be to the detriment of the Cypriot state and consumers.”
Whatever the outcome the Remote Gambling Association has made strides to better the regime proposed in Cyprus, for the benefit of the industry consumers and the government.




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