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Casino Taxes Down by Almost 20% in Three Months

Casino Taxes Down by Almost 20% in Three Months

Data from the Economic and Social Balance of the State Budget Execution for the first quarter indicates that revenue from taxes paid by casinos in the country fell by almost 20% in the first three months of the year, year-on-year, to 71.4 million meticals (one million euros), the Lusa news agency reported on Thursday 6 June.

According to the agency, the collection of this Special Tax on Gambling compares with 88.4 million meticals (1.2 million euros) from January to March 2023.

This is a fall of 19.2 per cent compared to the first three months of 2023, and only 5.8 per cent of all the revenue that the government estimates it will collect from this tax in the whole of 2024, valued at almost 1.2 billion meticals (17.8 million euros).

Revenue from taxes paid by casinos in Mozambique had grown by 21.9 per cent in 2023, compared to the previous year, to 371.1 million meticals (5.3 million euros), according to data from the Ministry of Economy and Finance previously reported by Lusa.

The collection of the Special Tax on Gambling in the 12 months of last year compares with 304.4 million meticals (4.4 million euros) in 2022.

According to information from Mozambique’s National Directorate of Gambling, the award of casino concessions in the country requires a share capital of the concessionaire’s commercial company of no less than the equivalent of almost 170.6 million meticals (2.7 million dollars) and an investment, over up to five years, of at least 347.6 million meticals (5.5 million dollars).

For the effective operation of games of chance, the concessionaires have to pay the state a Special Gambling Tax, levied on gross gambling revenues, of 20 per cent for concessions of up to 14 years, 25 per cent for concessions of up to 19 years, 30 per cent for concessions of 20 to 24 years and 35 per cent for concessions of 25 to 30 years.

‘The concessionaires must also pay Stamp Duty, corresponding to 50 per cent of the price of entrance tickets to the casinos,’ states the National Directorate for Games of Fortune or Chance, while adding that they ‘are exempt from paying any other taxes levied on profits from the operation of the game, as well as import duties on imported equipment and materials intended exclusively for the operation of the casino.’

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