Sri Lanka has decided to scrap proposed casino entry fees while making up the budget shortfall by hiking casino taxes and doubling the cost of an annual gaming license.
The Sri Lankan government unveiled its proposed 2016 budget this week, in which it promised to eliminate the $100 casino entry levy, which the country’s gaming halls were required to charge all visitors, both locals and foreigners. The levy, which had been proposed in the 2015 interim budget, had yet to be formally confirmed by parliament.
But before casino operators pop any champagne corks, the government is boosting casino operators’ annual levy from Rs 200m (US $1.4m) to Rs 400m. The government plans to amend the Finance Act to make casino directors and shareholders personally liable for non-payment or any act taken to avoid paying this increased levy.
The government has also proposed to simplify its income tax structure by applying one of only two tax rates – 15% or 30% – on businesses, with betting and gaming subject to the higher rate. That’s actually an improvement, considering that betting and gaming were previously subject to a 40% income tax, but the government also plans to impose a surtax of 25% of income tax liability on betting and gaming profits.