Increase in levies on excise and gambling sectors proposed by government
The Finance Ministry has proposed significant changes to the 2026 state budget, including increases in taxes and excise duties on alcohol, tobacco, and gambling in the United States. In an effort to secure additional funding, further work on the next year's budget has resulted in an additional USD 12.4 million in spending cuts. The government authority responsible for these cuts remains unidentified, but a review of state budget expenditure led to the joint identification and agreement by line ministries on an expenditure reduction of USD 171 million, which was approved by the government on August 26 this year. When it comes to gambling, the gambling tax rate for interactive gambling is set to increase from 12 percent to 15 percent. The tax rate for bingo will also rise from 10 percent to 12 percent. The tax per gaming machine is proposed to increase from USD 6,204 to USD 7,440 per year, while the tax per table for roulette, cards, and dice is proposed to increase from USD 33,696 to USD 40,440 per year. The tax rate for telephone games of chance, betting, and wagers is to be increased from 15 percent to 18 percent of the revenue. The excise duty increase on 'other alcoholic beverages' or spirits is expected to raise an additional USD 1,278,000 for next year's budget. The excise duty rate for these beverages is to be increased more rapidly, by USD 15 per 100 litres of absolute alcohol, starting from March 1, 2026. From March 1, 2028, the excise duty rates for all alcoholic beverages, including beer, will be increased by an average of 10 percent. The Finance Ministry also proposed an increase in excise duties on tobacco products. It is proposed to increase excise duties on tobacco products by 5 percent in 2026 and 2027, with the exception of cigars, cigarillos, and e-liquids. It is planned to continue increasing the excise duty rate on tobacco products by an average of 15 percent in 2028. The budget is expected to raise an additional USD 6.244 million next year by raising excise duty rates on tobacco products more rapidly. This increase is expected to generate an additional USD 9.2 million in revenue, with USD 9.025 million going to the state budget and USD 175,000 going to municipal budgets. In addition to these changes, the 2025 state budget earmarks USD 320.3 million for security, USD 45 million for education, USD 94.8 million for supporting families with children, and another USD 105.4 million for other measures. The budget also plans an additional funding of USD 565.5 million for the priorities set by the government in next year's state budget. These proposals are part of a medium-term reduction of USD 50 million annually in the base expenditure, which was decided when preparing the 2025 state budget. The Finance Ministry has submitted a report proposing these changes in excise duties on alcohol, tobacco, and gambling taxes for the years 2026, 2027, and 2028. These changes are expected to have a significant impact on the state and municipal budgets in the coming years.
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