Gov’t gaming taxes collected in Jan-May drop 56pct y-o-y

The amount collected by the Macau SAR government in gaming taxes between January and May has decreased by 56.5 per cent year-on-year to about MOP21 billion (US$2.6 billion), data provided by the Financial Services Bureau (DSF) today (Monday) revealed.

According to the data provided, overall local authorities only collected about MOP500 million in gaming taxes in May.

With gross gaming revenues dropping 73.7 per cent year-on-year to some MOP33 billion in the first five months of this year, local authorities have revised the estimates for the total in gaming taxes to be collected this year from MOP98.3 billion to almost MOP50 billion.

The government collects a 35 per cent tax on gaming revenues, but with extra levies bringing the effective tax rate to 39 per cent.

Meanwhile, revenues collected by the local government between January and May went down 26.7 per cent year-on-year to some MOP40.6 billion.

On the other hand, government expenses jumped by 38 per cent year-on-year in the first five months of this year to some MOP32.3 billion, with expenses for transfer, funding and subsidies – which had to be increased to boost the local economy – representing 67 per cent of total expenses.

The Macau SAR has allocated more than MOP50 billion to balance the 2020 budget and for policies to alleviate the economic impact of the Covid-19 pandemic, with expected total government expenses for this year having been revised up by 10 per cent to MOP114.6 billion.