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“Incompetence and hype interfere”, - Boris Baum on why the Verkhovna Rada did not vote for taxes for the gambling business


Last week on the agenda of the Verkhovna Rada was bill 2713-D on amendments to the tax code. But the deputies never got to him. Why they did not vote for an important law for the industry, when to wait for new taxes and whether the money will be returned to those who have already paid the triple cost of the license - Boris Baum, the first deputy of the Advisory and Expert Council at KRAIL, told specifically for gamingpost.net.
  • Interview
  • 2021-03-12 13:24:52
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“Incompetence and hype interfere”, - Boris Baum on why the Verkhovna Rada did not vote for taxes for the gambling business

Why was the draft law on taxation 2317-D not submitted to the vote in the Verkhovna Rada?

For some unknown reason, the deputies failed to vote for 4,351 by collision. And they got 211 votes for a completely understandable and transparent story. I think that the management was just scared. For the fact that a more complex law, which is 2713-D, is simply dangerous to endure. Because the fact that 4351 was not sent for a second first reading causes some bewilderment to me personally. It turns out that so people are not on the subject and do not understand what is happening. And if it causes bewilderment to me, then, apparently, it also caused bewilderment among the faction. And they probably thought that there was no point in passing tax law. Because it’s not only not voting for the law that will throw the entire market into a stupor, which is looking at us. To whom everyone promises that the rules will be clear and spelled out. This law removes all those wrong things that were in the previous version of 2713, like a three-year benefit and zero tax. We make a single rate for all areas of business, the issue of tax on winnings is being resolved. That is, everything that the market needs, everything that is expected of us and about which we have been talking all the time. But they will not only fail to vote but also manage not to return it for a second first reading. That is, it will be a triple blow to everything. It will not be clear when this law will be passed again when it will be registered, a new committee, and so on. Therefore, I think that, for objective reasons, it was just the fear to endure it.

What to do next? When will the bill be put to the vote?

We are constantly giving interviews, trying to explain. Ivan Tarasovich Rudy was even on the faction. But we need to explain, even more, to explain even more what is changing, why it is changing, why it needs to be done. But these hype stories, which are not backed up by anything, when people write: "But, taxes are cut three times, and here the license is cut three times." We need to constantly explain to people that we have licenses and taxes in different laws. And this incompetence, this hype stuffing interferes not only with the implementation of this law, they generally interfere with the life of the country as a whole. This is a subjective problem in our state. We need to talk more, communicate more. We have issued licenses for online casinos, but they are not even in the tax code. Maybe we still need to make them so that people can pay taxes? That is, we reach completely irrational things. Therefore, you need to tell, explain, we give constant explanations. Once again we will go to the faction next week, once again we will go to all the committees, and we will simply tell everyone what is happening. There is no other choice - without this law, the market will not start. What does it mean to us not to launch the market? It means that the budget receipts that were planned will not be in the country. It is impossible to force the market to work according to non-transparent rules. And I will support David Arakhamia, who said in one of his interviews that the first stage of casino legalization meant legalization and shading of the market. Well, okay, we legalized it, all the good fellows. To de-shadow it now, it is necessary to adopt such regulatory and legal acts that will help businesses feel that it is possible to get out of the shadows. But if nothing is clear about taxes, how will they come out of the shadows? And how can a white business compete with a black business? Further from the stages, we have the development of the market and the fight against the shadow market. How are we going to fight it if we can't even give the rules to anyone? And the white business will say - everyone works "in black" and nothing happens, and we cannot even start working in white. Nonsense. And this constant speculation is very annoying, but nothing remains but to go, explain and chew. Therefore, I hope that next week we will once again speak at the faction, once again try to explain what kind of law it is, why it is needed, we will go through the committees, and I am sure that this law will be submitted again for the first reading next week, and it will be voted. There is simply no other choice.

If they still vote for 2713-D and cancel the triple licenses, will those who have already bought the license get their money back?

We discussed this at the tax committee and consulted. If a new law is adopted, which abolishes the triple license, recalculations will be made. As we were explained, there is such a practice - either they will be credited to them, as for paying a license for the next years, or they will be counted in taxes. That is, this practice exists, and this money will not burn, as many operators worry. It doesn't work that way. This money will certainly be taken into account.

Why did the Verkhovna Rada fail the vote for the bill that corrected the collision in the formation of KRAIL?

As for 4351, I am simply outraged by the position of the deputies. Vote for anyone, let the Verkhovna Rada Committee choose. This option got forty votes. Perfectly. Vote for any version. But take some position. And so, it turns out, Dubinsky shouted, shouted, scored forty votes. If you didn't get it, vote for the alternative rate. And they closed the question. And so - the position is destructive. To whom did they make it worse? They showed only their incompetence. And they put their emotions above state interests. Let the Commission choose whoever wants it, please. Just do it. Don't start some kind of circus. Now, according to the law, what has happened is that the Cabinet of Ministers will hold a competition. Not the Committee, the Cabinet continues. What have you achieved? You can, of course, again accuse me of lobbying that I agreed with Dubinsky. But this is all nonsense. Well, thanks to Alexander for once again spoiling the correct story, neither gave his own nor gave to others. This is his and all other deputies' position - neither to himself nor to others.

About licenses for land-based casinos and equipment certification - see the second part of the interview with Boris Baum at gamingpost.net.

The gambling portal gamingpost.net monitors the process of legalization of gambling in Ukraine. Read the latest news: How do Ukrainians feel about the gambling legalization?

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