The Macao SAR Government has told a junket lobby group that it will not abolish a 5% tax charged on commissions earned by junket operators.<\/p>\n
Confirmation of the governments intention to impose the 5% tax comes after the Macau Association of Gaming and Entertainment Promoters sent a letter to the government on 6 February requesting its abolition.<\/p>\n
As previously reported by IAG, junkets have long been required to pay tax on the commissions they receive on rolling chip turnover, although this tax has previously been waived.<\/p>\n
However, with the passing Macaus new junket law, titled Legal Framework for Operating Games of Chance in Casinos, the government is now demanding payment of the tax.<\/p>\n
In response to the lobby groups letter, the government this week replied, Under the Gaming Law, there is no legal basis to exclude a portion of gaming junkets income from the tax because of the cost of the gaming junkets.<\/p>\n
In other words, according to the relevant provisions of the existing gaming law, the tax on gaming junkets commission should be calculated at 5% of the gaming junkets commission paid by the licensee.<\/p>\n
In an interview with IAG in March, the President of the Macau Association of Gaming and Entertainment Promoters, U Io Hung, argued that a 5% commission tax would have a significant impact on the operation of junkets, who are no longer permitted to engage in revenue share agreements with concessionaires.<\/p>\n
He also pointed out that junkets are facing competition from the move by concessionaires towards a direct VIP model, which allows them to provide greater incentives to customers because they no longer have to pay junket commissions.<\/p>\n
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Macau government says 5% tax on junket commissions here to stay - Inside Asian Gaming<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The Macao SAR Government has told a junket lobby group that it will not abolish a 5% tax charged on commissions earned by junket operators. Confirmation of the governments intention to impose the 5% tax comes after the Macau Association of Gaming and Entertainment Promoters sent a letter to the government on 6 February requesting its abolition Continue reading