Damjanović left the group for a new gambling law: Nothing was done, the chaos continued

The reason for the resignation, as he stated, is that the working group did not even prepare the basic text of the bill even after 14 months.
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Ažurirano: 04.08.2014. 18:46h

The President of the Parliamentary Committee for Economy, Finance and Budget, Aleksandar Damjanović (SNP), told "Vijesta" that he resigned from the membership of the working group that was supposed to prepare the basis of the text for the proposal of the new law on games of chance.

The reason for his resignation, as he stated, is that even after 14 months, the working group did not even prepare the basic text of the bill.

This group consists of representatives of state institutions of the Ministry of Finance, Taxation and the Administration for Games of Chance, the Assembly and two associations of organizers of games of chance. Damjanović stated that he suggested that due to the inefficiency of that work body, the way it works should be redefined and that obligation transferred to the working group for combating the gray economy, which does its job much more efficiently.

"The working body for the preparation of the basis for drafting the text of the draft law on games of chance was formed on the seventh of May last year. After a series of meetings of the working body and subgroups, I can state with regret that even after fourteen months the task has not been completed and the basis of the text of the draft law has not been completed. At the session we held on the first of July, I announced that, aware of my personal responsibility for not fulfilling my obligations, I would resign from membership if the working body of the Assembly did not complete its precisely defined task by the end of the spring session of the Assembly. July, introducing the Minister of Finance, Radoj Žugić, as the coordinator of the working body," said Damjanović to "Vijesta".

When asked whether the new law can be adopted by the end of this year, Damjanović replied that he thinks that all deadlines have expired long ago and that it is one of the most important and urgent obligations of the Government and the Assembly.

Due to uncontrolled betting on the Internet, a large outflow of money (photo: Shutterstock)

"The area of ​​games of chance must be systematically defined because the current situation is unsustainable and it is necessary to determine, pass and apply a serious law in that area as soon as possible. This creates the conditions to abolish the payment of VAT in that area, which turned out to be an impossible mission and which should be replaced by an adequate tax and concession policy in the field of games of chance precisely through the adoption of a new law," said Damjanović.

He claims that due to the bad provisions of the current law and the absence of online monitoring, the state's losses are in the millions and many times exceed the previous budget revenues on that basis.

It reminds that the current law on games of chance has been in force for 10 years and that the legal provision on the establishment of an online monitoring system as a key system that would monitor the real volume of special games of chance in casinos, betting shops and on machines has not yet been fulfilled, and on the basis what would realistically be taxed in this area.

Last week, the government gave a positive opinion on part of the proposal of a group of DPS deputies to amend the law on games of chance, VAT and personal income tax.

"In this way, the annual income would be many times higher than these, around 5 million euros, which are realized by partly "taxing" the organizers through fixed concessions, and the other essentially more important variable part is determined "on the fly", i.e. without the possibility of checking do the organizers report all the income and pay concessions in relation to that amount. That is the core of the problem and the state's powerlessness. The Administration for Games of Chance, which has been in an "acting" state for a long time2, only last year made a report on online supervision. The outcome of the tender for the procurement of the system, published on February 19, is unknown," said Damjanović.

Last week, the government gave a positive opinion on part of the proposal of a group of DPS deputies to amend the law on games of chance, VAT and personal income tax.

The abolition of VAT on games of chance, the introduction of a 15 percent tax on all winnings from games was supported. It is acceptable to the government to increase the annual concession for games over the Internet from 10.000 to 15.000, and to introduce a concession of 50.000 for lottery games.

They also supported the introduction of a tax of 9 percent on all games instead of a variable concession of 10 percent. Organizers would be obliged to create an online system and connect it with the Tax Administration.

The Assembly should give its opinion on these proposals.

The state, if it wants, can bring order and fill the budget

Damjanović assessed that the state has the mechanisms, if it has the political will, to introduce control of the so-called "Internet betting" that takes significant money from the state either by abolishing or controlling betting websites, and to urgently change the regulations on the spatial and technical conditions for organizing games of chance, the changes of which were made in April last year, made it possible to organize games of chance and in unsupervised catering establishments.

"That by-law could have been repealed a long time ago, because it is not in the spirit of the provisions of Article 51 of the Law, and why it was passed and why it is not repealed should be asked by the Ministry of Finance, which passed it. Along with the redefinition of the concession policy through the rapid increase of concessions for games in casinos, betting games and games of chance on machines, but also comprehensive supervision of lottery games of chance and numerous "non-taxed" quizzes and prize games, the state would make great strides and achieve the multiple goal of rapidly increasing budget revenues and suppressing the gray economy in that area," he said. is Damjanović.

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