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The NGM Company is opposed to changes in tax conditions in the field of lottery organization, this may lead to lower sales and tax deductions to the budget.

The NGM Company is opposed to changes in tax conditions in the field of lottery organization, this may lead to lower sales and tax deductions to the budget.

This was announced at a meeting of the Economic Press Club on Friday by Plamen Milanov, director of NGM Company, which since April 2018, as part of a public-private partnership contract, has been Moldova's partner in the development of instant lottery, sports betting and lotto. Under the terms of the PPP contract, the NGM Company, a subsidiary of the National Lottery of Bulgaria, should develop three types of business (the first two have already been launched, the organization of the lotto is scheduled to begin before the end of 2019), of which two have never brought government revenue before. According to Milanov’s estimates, in 2019 alone, the national budget will receive more than 20 million lei from the lottery sector, and it’s impossible to estimate income from online games due to the large number of illegal sites that are difficult for the state to deal with. Speaking about changing tax conditions, Plamen Milanov noted that in most countries of the world, lottery winnings are not taxed. According to him, in Slovakia, Germany, Hungary, the Czech Republic, Denmark and many other countries, taxes on winnings are not applied, and in countries where such a tax exists, the lottery does not develop. For example, in Romania, individuals pay this tax, as a result, the turnover of the National Lottery of Romania is less than in the Moldovan lottery. “In the end, the introduction of a tax on winnings is the moral side of the issue. The company, as a result, will mislead its own citizens by promising them, for example, a gain of 1 million lei, but in fact the gain after tax will be 880 thousand lei, ”Plamen Milanov said. According to the information provided, for 6 months of 2019, the sales of lottery tickets in Moldova amounted to 325 million lei, the paid winnings (monetary and material) - 192 million lei. Every month, a private partner spends about 7 million lei (350 thousand euros) on advertising. With regard to the abolition of the exemption of the gambling sphere from local fees, this initiative, according to Milanov, is not justified, since sales are carried out mainly in existing retail outlets where lottery tickets are sold along with other goods. In total, it is about 4 thousand points of sale and only one of its own. He also drew attention to the fact that many people confuse the sphere of lotteries with gambling and casinos: the lottery all over the world is related to entertainment rather than gambling, and has low social risks: other taxes and licensing fees apply to casinos. “We do not want to confront the authorities. We are ready to re-discuss the PPP contract, if necessary. We only ask that the bills that concern the state, on the one hand, as the legislative body, and the state as the vector of the national lottery, take into account the interests of all parties, ”said Milanov, noting that if the state earns in the form of taxes, then the state will not earn as a lottery operator. The director of the National Lottery of Moldova, Vlad Hincu, during the discussions clarified that, according to the law, the company has a monopoly in the field of gambling with the exception of casinos. Today, the National Lottery pays 0.1% of each lottery ticket issued to the market: it is about 300 thousand lei per month and more than 1 million lei from the start of operations. More than 200 people are employed, all taxes are paid. Changes in tax conditions will lead, first of all, to an increase in the cost of lottery tickets and a decrease in sales, as a result, the state budget, the state and citizens who buy tickets will suffer, ”said Hincu. // 09.08.2019 — InfoMarket.

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