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Spanish gambling trade association warns on consequences of excessive taxation

Written On  4/15/11  By Recentpoker.com staff writer  Lenny Wasman :

Spanish gambling trade association warns on consequences of excessive taxation
 
The Spanish gambling trade association AEDAPI, whilst welcoming the passage of the gambling reform bill through the Congress of Deputies this week,  has cautioned that excessive taxation enshrined in the bill could have negative consequences.
 
The Association recognises that regulation brings with it many benefits to both the nation and operators who want to set up business within it, but remains concerned that the proposed tax rate has remained high at 25 percent of net income.
 
This was one of the highest tax rates in Europe, the Association pointed out, and meant that operators in a competitive market will face a long haul to profitability.
 
The Association reminded lawmakers that several recent independent studies had shown that overly high rates of taxation actually led to a reduction in the amount of taxes collectable once a tipping point was reached, and that tipping point had been exceeded in the bill.



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