GGRAsia – Macau 2022 gaming tax US$2.37bn, 56pct of forecast

Macau 2022 gaming tax US$2.37bn, 56pct of forecast

Feb 20, 2023 Newsdesk Latest News, Macau, Top of the deck

In 2022 the Macau government raised 55.6 percent of its revised forecast for direct tax from gaming revenue, according to data from the city’s Financial Services Bureau.

Such tax take was just over MOP19.11 billion (US$2.37 billion), versus its revised forecast of just under MOP34.37 billion.

The authorities’ initial budgeted 2022 estimate for such tax take had been nearly MOP49.76 billion, meaning the eventually-collected amount was 61.6 percent below the first prediction.

The result coincided with disruption during 2022 to Macau’s tourism volumes, amid efforts in mainland China and Hong Kong – key markets for the supply of the city’s visitors – as well as efforts by Macau itself, to contain the spread of Covid-19.

Macau’s final authorised budget for 2022 had been MOP123.42 billion. Its actual expenditure in the 12 months was just under MOP99.59 billion, meaning it had a budget execution rate of 80.7 percent.

Under Macau’s new, 10-year gaming concession system that came into effect on January 1, the effective tax on casino gross gaming revenue (GGR) is 40 percent.

Previously Macau had charged an effective tax rate of 39 percent on GGR – with 35 percent via direct government tax, and the remainder via a number of levies to pay for a range of community good causes.

Under the new system, Macau’s casino concessionaires might be entitled to an exemption – at the discretion of the city’s Chief Executive – of up to 5 percentage points of the 40 percent GGR tax, on certain amounts of gambling by players from overseas. The details of such a scheme are still to be clarified.