2023-10-06 16:26:00
The Ministry of Economy, led by Radu Oprea (PSD), warned the Government that the adoption of the Emergency Ordinance on the new taxes in the gambling industry, before the notification of the European Commission, might make it inapplicable in case of litigation, the opinion states given by the Ministry on October 4, one day before the act was adopted by the Government. The Ministry also presented how the Romanian Lottery will be financially affected by the new taxes.
Romanian Lottery gamePhoto: Inquam Photos / Octav Ganea
Why the prior notification of the European Commission is needed. The risk is in case of litigation
The Ministry of Economy emphasizes in the opinion given to the emergency Ordinance on gambling that normative acts containing technical regulations must be notified to the European Commission, an aspect provided for in EU legislation, as happened with the current ordinance regulating gambling – GEO 77/ 2009.
- “Also, considering the fact that GEO no. 77 of June 24, 2009 regarding the organization and exploitation of gambling was notified to the European Commission (notification 2009/0417/RO) in accordance with the provisions of Directive (EU) 2015/1535, we consider that any amendment to the mentioned normative act requires the notification procedure , according to the provisions of Directive (EU) 2015/1535.
- In this context, we inform you that the normative acts containing technical regulations, adopted without complying with the notification procedure provided by Directive (EU) 2015/1535 are inapplicable and become unenforceable to third parties, in case of litigation, according to the jurisprudence of the Court of Justice of the European Union. “, emphasizes the Ministry of Economy in the opinion obtained by HotNews.ro.
HotNews.ro requested both the Minister of Economy, Radu Oprea, and the Government, to specify whether the European Commission was notified before the adoption of this normative act, and we will return with answers as soon as we receive them.
The lottery will have significant losses and will have to abandon mutual bets
The same opinion presents the impact of the new taxes on the games of chance organized by the Romanian Lottery, an analysis made at the level of the state company.
Adopting the new taxes will generate an increase in the Lottery’s expenses by over 5.74 million euros annually, but also the abandonment of certain activities.
- “It should be noted that in the context of these tax increases, the activity of mutual bets will have to be closed, as this segment of the game will generate an increase in expenses by 52.16%, respectively by 80,850 euros annually”, it is shown in the document.
Mutual bets are those bets in which the prize is distributed to the participants declared winners in proportion to the number of winning options held by each of them, the organizer being involved only in the process of collecting the participation fees and distributing the amounts established as prizes, according to the Romanian Lottery.
The simulation of the Romanian Lottery also shows that by applying the new taxes, under the conditions of maintaining the level of revenues recorded in 2023, significant losses would be generated for the company, of over 431,300 lei annually.
Gambling Ordinance, adopted by the Government: Higher taxes, operators – required to have their headquarters in Romania and alcohol is prohibited
The government adopted on Thursday, October 5, the emergency ordinance that establishes higher taxes for the gambling industry, the prohibition of alcoholic beverages in locations, the increase of guarantees submitted by companies and the obligation of operators to have their headquarters in Romania. “The purpose is obvious – for taxes to be collected in the country,” said Mihai Constantin, the Government’s spokesperson.
- “The government today approved an emergency ordinance that sets higher levels for the fees related to the license to organize and operate games of chance to be paid annually, as well as special fees and guarantees submitted by companies in this field.” , declared Mihai Constantin at the end of the Government meeting.
He said that “the project that was made transparent by the Ministry of Finance was approved as such in the Government meeting.”
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