Parties forming the new coalition government of Lithuania have agreed in principle to impose a \u2018progressive gambling tax system\u2019 with the end goal of optimising revenues for state causes. <\/p>\n\n\n\n
October saw PM Mindaugas Sinkevi\u010dius<\/strong> of the Social Democratic Party (LSDP) <\/strong>renegotiated terms of the \u201cFor Lithuania\u201d <\/strong>coalition with the Democratic Union. <\/strong><\/p>\n\n\n\n The coalition secured its majority in the Seimas gaining the support of the political bloc of the Farmers Party, Greens and Christian Families<\/strong>. <\/p>\n\n\n\n Led by Virginijus Sinkevi\u010dius<\/strong>, the Democratic Union is also the party of minister Tomas Tomilinas<\/strong>, who has championed the progressive gambling tax proposal.<\/p>\n\n\n\n The coalition will oversee the continued implementation of Lithuania\u2019s gambling reforms, introducing tighter compliance, player protection and advertising requirements ahead of a new regulatory framework taking full effect in 2028.<\/p>\n\n\n\n Tomas Tomilinas, the chairman of the Seimas Committee on Social Affairs and Labour, said a group representing the Social Democrats, Farmers and Greens, and Democrats had agreed on the issue during a meeting on 5 November to determine a progressive tax on gambling licences. <\/p>\n\n\n\n Last week, deliberations were hosted in Seimas (parliament) as Lithuanian authorities are told to prepare for a tougher supervision of gambling ahead of new rules being introduced on advertising, compliance and player protections. <\/p>\n\n\n\n Furthermore national authorities have been told to implement exclusive provisions in relation to the monitoring of Lithuania\u2019s 28 gambling licences (land-based and online).<\/p>\n\n\n\n Lithuanian news agency BNS<\/em><\/strong> reported that Tomilinas had said the revenue package would bring in an extra \u20ac36 million ($42 million) to the state budget.<\/p>\n\n\n\n No tax bands or rates had been agreed \u2014 \u201cFinally, we have decided specifically on progressive taxation, specifically for gambling,\u201d Tomilinas said after the meeting, BNS<\/em><\/strong> reported.<\/p>\n\n\n\n The Finance Ministry is finalising its stance on a bill presented by Tomilinas and other members of parliament (MPs).<\/p>\n\n\n\n Tomilinas said the model was agreed and it is now down to numbers.The agreement is therefore on the principle of the tax reform, rather than the tax itself which will come later. Operators await the proposed timetable to factor into their financial planning. <\/p>\n\n\n\n The tax proposal is part of ongoing discussions for the country\u2019s budget in 2027. Finance Minister Taurimas Valys<\/strong> told MPs that the talks were not over and they could expect further talks in the coming week.<\/p>\n\n\n\n Public estimates for the revenue package vary. BNS<\/em><\/strong> quoted Tomilinas as saying the package would bring in \u20ac36 million ($42 million)in revenue, while public broadcaster LRT quoted a \u20ac34 million ($39,5 million) revenue estimate in its coverage of the meeting, referring to progressive taxation of gambling and lotteries.<\/p>\n\n\n\n Rates and revenue estimates still need to be clarified. The figures should be treated as estimates while the government finalises its budget.<\/p>\n\n\n\n