The United Kingdom online gambling industry is opposing the tax rate of 15%. The online gambling operators have warned that this high a rate of tax would lead to a higher rate of non-compliance. The industry’s preferred rate of tax is 10%. It should be clarified that these rates are on Point of Consumption basis. Analysts at GamblingData have worked out that with a 10% tax rate and 100% market compliance the tax revenue will be £274 million. They have pointed out that for the Treasury to get less than £274 million under a 15% POC tax rate, the rate of compliance would have to fall to 67%. This extent of a fall in compliance is unlikely and therefore it will be extremely difficult to convince the government to lower the proposed tax rate to 10%.
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