According to reports, a local gaming expert in Macau recommended that the government consider lowering the tax rate on VIP game imports to allow the city’s casino industry to compete with Asian competitors such as Singapore.
It comes from Wang Chang-bin of the Center for Game Education and Research, a division of the Macau Polytechnic Institute, and is sponsored by Kwak Chi-jung, president of the Macau Game and Entertainment Promotion Association.
Macau has reportedly said it should consider lowering the overall game tax and impose different tax rates on the popular market and VIP game imports, as in Singapore.
“The Macau government will be able to investigate the Singapore model.” “[Makao’s] existing [game] tax rates, the VIP sector here is actually at a disadvantage.”
Wang says Singapore imposes a 15% tax on all public market revenues, a 5% tax on VIP plays, and a 7% goods and services tariff on both. He said this compares to Macau’s effective tax rate of 39 percent on gross gaming revenue and could lead VIP customers to choose to play elsewhere.
“Compared to Macau’s public market play, VIP play faces much more competition with other neighborhoods. “[Chinese] VIP players are so mobile that they can go anywhere in the world.”
, Fitch Ratings reportedly explained that Singapore’s game tax had a positive impact on the local casino industry and was fixed at the current rate.
“In the case of junk, we can benefit more at a more acceptable rate under a model like this.” “It could attract more junkets to the Macau VIP sector, and they could again attract more investors.”
While the VIP tax in the Philippines is equivalent to 15 percent of the casino’s total gaming revenue, South Korea imposed a similar tariff set at 20 percent, but the Macau government has yet to mention its plans to overhaul the current system. Lionel Long Vai Tac, the economy and finance minister for the former Portuguese enclave, said a year ago that his office would only consider such a change after an “interim review” of the sector.