British finance minister Gordon Brown will reveal a plan in his budget next month to encourage the online gambling industry, according to published reports.He will use the March 21 budget to announce that companies could obtain a British license and still remain based overseas in return for a tax – possibly as low as 2 percent or 3 percent, the Daily Telegraph said Friday in an unsourced report.
Named a Remote Gaming Duty, the new tax would enable gambling firms to avoid paying British VAT, the newspaper said. A comment was not immediately available from the Treasury.
Internet gaming groups will be able to relocate to Britain and obtain a license in September under the Gambling Act, the newspaper said. However, such companies have said they would decline the chance if it meant paying a tax on gross wins, it added.