Casinos in the Philippines’ Entertainment City gaming zone are bracing for the abrupt end of their tax holiday.
On Thursday, Andrea Domingo, who heads the Philippine Amusement and Gaming Corp (PAGCOR), announced plans to revoke the temporary tax breaks it offered the four brick-and-mortar casino operators in Manila’s Entertainment City back in 2014.
Domingo told the Manila Bulletin that PAGCOR was “preparing the necessary correspondence” to alert the casino operators that the current tax rate of 5% of VIP table game revenue would be reverting to its original rate of 15%, while mass market tables, electronic gaming and slots would climb from their current 15% to the original 25%.
The reductions were originally introduced as a way to compensate operators for the Bureau of Internal Revenue’s surprise decision to impose a 30% income tax on the Entertainment City resorts, rather than the 5% franchise tax operators had been told to expect.