Tax facilities for gambling have been canceled. During the Parliament meeting on August 15, in two readings, deputies approved amendments to the Fiscal Code. Thus, the taxation of lottery and sports betting winnings is introduced and VAT exemptions on imported goods and services within the public-private partnership projects, without the right of deduction, are canceled.
Moreover, the rule regarding the VAT refund on capital investments (expenditures) made within the public-private partnership of national interest was repealed, as was the exemption from tax payment for the commercial units and services provided to persons who practice activities declared by law as activities that constitute a state monopoly.
"Thanks to these fiscal incentives, which gradually emerged on a yearly basis, the gambling industry reacted predictably, developing and becoming more profitable, being later declared a state monopoly. Via existing incentives, the state of the Republic of Moldova, in essence, promotes gambling, which is not necessarily honorable and not necessarily the most sustainable economic model and also entails a pronounced risk of corruption and money laundering”, is stated in the note accompanying the bill.
According to the authors, multiple studies show the degrading effect that gambling has on citizens, families and on society as a whole. "Due to a favorable tax regime, under state monopoly conditions imposed two years ago, obscure interests and corruption have penetrated the gambling industry - an industry recognized internationally as one of the common vehicles for money laundering", says the note.
Individuals who will win the lottery or sports bets, will be taxed for income exceeding 240 lei.
NGM Company, the private partner of the National Lottery of Moldova, says, in a press release, that the draft law leaves a lot of question marks about how the taxing mechanism will work and that it does not take into account the expenses of the players for lottery tickets or sports bets. Additionally, it is not clear how MPs want to tax the earnings in the form of tangible assets, such as cars or trips.
