Proposed Increase in Gambling Tax to Offset Alcohol Levy

This proposal, submitted by MPs Silvio Erkens and Chris Stoffer, comes in the wake of the Dutch government's plan to significantly raise the levy on alcoholic beverages. The government has hinted at a 16.3% increase in excise duty for alcohol like wine and beer. Erkens and Stoffer, recognizing the potential negative consequences, have suggested halving the proposed alcohol tax increase to 8% while compensating for the lost revenue by raising the gambling tax.

Implementing half of the excise duty on alcohol would result in an approximate €74 million ($78.3 million) reduction in tax revenue. To bridge this gap, MPs Erkens and Stoffer have recommended a 1% increment in the tax rate imposed on gambling operators, pushing it from 29.5% to 30.5%.

In their proposal, the MPs emphasized the growing popularity of online gambling activities. Ideally, they sought to exclusively raise taxes for online gambling operators, but current regulations do not differentiate between various forms of gambling. Hence, the increase would affect all gambling forms in the Netherlands, unless further adjustments are made.

If the Dutch government enacts this 1% tax increase, it is projected to generate an additional €26 million ($27.5 million) in tax revenue. Additionally, the proposal suggests an increase in tobacco excise duty alongside the gambling tax.