Offshore Online Gambling To Be Taxed In The United Kingdom

In his budgetary address, George Osborne, the UK Chancellor of the Exchequer categorically declared that all online gamblers that had so long been catering to the millions of British customers would henceforth be taxed. This proposal had earlier been voiced because of a report by the departments of music, culture, and sports a year earlier. This report had attempted to review the existing gambling laws and soon after this came out, there were plenty of discussions and debates on if the proposal should be executed.

With the inclusion of this proposal in the budget speech, now there remains little doubt that this will be indeed be implemented. It should be clarified that the rationale behind this proposal is not generation of revenue. Besides helping the economy, this move is to bring back gambling operators who had departed offshore. This is a serious attempt to make gambling fairer and more competitive. According to the Chancellor, more than ninety percent of gambling was being currently supplied to the British gamers by foreign nations.

This scenario was also indirectly forcing the existing operators to slowly leave. To take care of this exodus, the Chancellor proposed to introduce double tax relief. This change is expected to rake in more revenues, so much so that nearly an extra 55 million pounds is predicted to be made during 2014-2015. This major transformation in favor of taxation at the point-of-consumption is similar to practices adopted by other European countries before this.

This is also expected to widen the British taxation base allowing fair competition between the British and foreign gambling operators. Moreover, this proposal also implies that the government is open to discussing the details of this type of taxation with online gamblers.

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