Bulgaria’s AGIB Opposes the New Gambling Tax and Deadline

Bulgaria’s new gambling taxes do not sit well with the gambling industry. This follows the National Assembly Committee on Budget and Finance’s passing of a measure that would raise the gambling license fees by a staggering 300% and the alternative gambling tax by 60%.

The Association of the Gaming Industry in Bulgaria (AGIB) expressed its concerns about the drastic changes which, according to Bulgaria’s minister of finance, Assen Vassilev, would generate an additional BGN 200 million ($112 million) in taxes each year.

According to the AGIB, the new taxes are disproportionate and could have adverse effects. The measure would make some operators’ businesses unsustainable and lead to serious losses and even bankruptcies. As a result, the national economy might also take a hit, the AGIB warned.

The industry body pointed out that the Bulgarian gambling industry has been evolving for 25 years and has made significant contributions to the local economy, making the country more appealing to foreign investors. The AGIB also mentioned that the industry is the home of over 500 high-tech B2B firms, as well as 323 gambling hall operators, 17 casino operators, 84 gambling equipment distributors and suppliers and 21 iGaming operators.

In addition, the AGIB provides over 80,000 people with jobs and is already contributing roughly BGN 350 million in taxes to the local economy.

The AGIB Asked to Be Allowed to Reschedule the Payments

The AGIB firmly expressed its opposition to the new measures, especially the new deadline for submitting the new fees. For reference, the new rules require gambling companies to submit their declarations and fees by February 28, which would cause further negative impact on the industry, the AGIB argued.

The industry body conceded that the ministers can legally introduce new fees at the last possible moment, although it slammed this as a bad practice. However, it firmly opposed the deadline and asked the National Assembly to confirm the deadline for operators who have been granted licenses prior to the new changes. The AGIB also asked lawmakers to consider the expiry date of operators’ licenses when introducing the fees and allowing gambling companies to proportionally reschedule the payment.

This would allow operators to keep up with the Ministry of Finance’s demands and fulfill their obligations on time.