Gaming tax revenue grows 13% year-over-year in 2021
Macau SAR collected a total of MOP 33.9 billion ($4.2 billion) in gambling taxes in 2021, some 13% more than the previous year and 68% of the estimated target for the year.
Local authorities predicted that the year would end with a total of MOP 130 billion in gross gambling revenue, however, after outbreaks in the SAR and mainland continued to impact visitor numbers, combined with the continued decline of the VIP market pool, total results reached MOP86. 8 billion by the end of 2021, about 60% of what was planned.
The government taxes gross gaming revenue from Macau casinos at a rate of 35%, with other levies bringing the effective tax rate up to 39%, however, delays in reporting results and taxes collected do not allow a direct comparison of lead times.
The local government also repeated the estimate of MOP 130 billion in gross gaming revenue for 2022, expecting some MOP 45.5 billion in gaming taxes.
For comparison, in 2019 before the pandemic outbreak, Macau SAR collected MOP 112.7 billion in gambling tax revenue.
The reduction in gambling tax revenue has led the authorities to resort to MOP 90.8 billion from the Extraordinary Financial Reserve since the start of the pandemic in early 2020 to balance the local budget after advancing with several economic and political stimuli Support.
Overall, the SAR administration has a total of MOP 50.4 billion in current revenue – which includes gambling taxes – and MOP 39.3 billion in capital income – which includes money injected from the local financial reserve – for a total of MOP 89.8 billion in income.
At the same time, government budget expenditure amounted to MOP 86.1 billion, of which MOP 50.1 billion was for “transfers, finance and subsidies” only, including disaster relief assistance. pandemic.
Despite the recession, the Macau SAR 2022 public budget proposes the continuation of several policies of tax deductions and exemptions, subsidies and cash distributions.
The government’s MOP 13.1 billion Capital and Development Expenditure Plan (PIDDA) for 2021 also achieved an execution rate of 98.6%