According to the President of the Macau Association of Gaming and Entertainment Promoters, Kwok Chi Chung, the government of Macau has reintroduced a 5 percent commission tax for gaming junkets, and such a move will make it more difficult for the sector to operate.
The authorities recently informed junkets that a 5 percent tax, or 1.25 percent of the entire net rolling amount, must be paid on their commissions. According to the new junket law, operators of VIP junkets must pay a 5 percent tax in addition to a commission rate cap of 1.25 percent of rolling chip turnover.
“We certainly hope that the government will exempt this tax. Now gaming junkets’ revenue is falling day by day, and our profits will go even lower after this tax was reintroduced, such a move will for sure affect us,” Kwok stated.
The report also said that the tax must be paid monthly and sent to Macau’s Financial Services Bureau within the first ten days of each subsequent month. The president of the gaming organisation confirmed to MNA that the commission tax, which had previously been waived by the SAR government, had been reintroduced beginning in January.
The president said it was difficult to foresee the future because the new gaming law and regulations only recently went into effect, and they need more time to examine what the future holds when it comes to the possibilities of junket promoters.
Meanwhile, he noted that after COVID limits and preventions were withdrawn in January, the industry has begun to experience a favourable resurgence.