Qui prodest?!
These decisions led to reducing the number of gaming business facilities and its participants going “in the shadow”, according to Victor Markov, Chief State Tax Inspector of Sverdlovsk region.
He said that in the year 2006 the regional budget received 80.9 mln rubles less than it was due. The double increase of tax rates for slot machines (7.5 thousand rubles) resulted in the reduction of the number of registered gaming business facilities in the region: according to Federal Administration of Tax Service, in Sverdlovsk region it is 17%. If in January 2006 over 16 000 gaming facilities were registered, by the first of July their number was 13 108.
Alexey Galaguzov, President of Ural Gaming Business Development Association, thinks that the issue of tax escape is relevant for any business but the peculiarities of the gaming one makes tax administration a special matter. He agrees that measures taken by the state to toughen the control are useful as they will help hounding out “the illegals” from the market. A. Galaguzov remarks that the gaming business in Sverdlovsk region is facing a serious crisis, and the owners of gaming facilities have to curtail their activities. Making a reference to the information of the regional Ministry of Finance, he stated that the tax collection from gaming business, for the 9 months of the current year, is only 60% (while the norm is 75%). It is also remarked that low tax payments are caused by the overall decline of business activities in this area.
Market participants state that sales of gaming business facilities will go on over the whole following year.
Source: the “Novy Region” (Ekaterinburg) materials