Brunswick increases taxes on gambling

Brunswick increases taxes on gambling

After eight years, Brunswick raises amusement tax on gambling machines again. The council decided: The operators of gambling machines will have to pay a tax of 22 percent in the future.

In 2012, the tax rate rose to 20 percent from 12 percent at the time. At the same time, the council decided on the so-called control concept for amusement arcades, which determines where arcades are allowed to open and where not. In addition, a minimum distance between gambling halls was required in 2017. Gambling halls forced to close.

A regulating effect, according to the financial administration, this had admittedly not had. Sales and revenues initially rose sharply. At times, annual growth was ten percent. According to the latest figures, each Braunschweig resident loses, purely mathematically, about 100 euros a year on slot machines. Nevertheless, the city council has had to make sure that the tax increase does not have a "strangling" effect on the gambling trade per se.

To the council, the administration pointed out that in other municipalities even higher taxes are required – Stuttgart, for example, 26 percent. Braunschweig would set with 22 per cent thus a high, but not the highest tax rate. Other municipalities, on the other hand, demand much lower tax rates: In Wolfsburg, vending machine operators only have to pay 18 percent amusement taxes.

The higher tax rate will have to be paid as of April. The tax authorities expect additional revenue of around 337,000 euros by the end of the year.000 euros. In subsequent years, with 450.000 euros.

The planned relocation of the Bad Harzburg casino to Braunschweig, around 100 additional machines are to be installed , will not increase Braunschweig's entertainment tax revenue. In response to an inquiry, the tax authorities of the town of Bad Harzburg stated that "casinos are generally not subject to the local amusement tax. Instead, the state of Lower Saxony levies the casino tax in accordance with the Lower Saxony Casino Act."

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