Portuguese government found to be discriminatory

Discriminatory action is to be taken against Portugal by the European Commission (EC) in relation to taxes collected by the government from foreign lotteries.

According to Portuguese taxation laws, income earned in Portugal in the form of prizes or winnings from competitions, games or bets are subject to tax.  However, the winnings from the EuroMillions lottery and national lotteries organised by Santa Casa da Misericórdia are exempt from these taxes.  

It is because the Portuguese government is giving tax favours to national lotteries over those of foreign lotteries and gaming that the EC wishes the Portuguese to alter this particular tax legislation to fall in line with the EC Treaty regarding discrimination.

The EC argues that taxing foreign lotteries and not national lotteries and gaming cannot be justified as a measure to prevent the harmful consequences of gambling.

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