Mozambique: Casino tax revenue in Q1 up 12% YoY to €1.3M

Login

Register

http://www.clubofmozambique.com/

Mozambique: Casino tax revenue in Q1 up 12% YoY to €1.3M

7:15 CAT | 30 Aug 2023

FILE - For illustration purposes only. [File photo: Lusa]

Revenue from taxes paid by casinos in Mozambique in the first quarter were up more than 12% on the same period in 2022, to €1.3 million, according to official data compiled on Wednesday by Lusa.

According to data on the implementation from January to March of the state budget, revenues from the collection of the Special Tax on Gambling in the period totalled 88.4 million meticais (€1.3 million), which corresponds to 9.9% of the projected annual amount.

The document justifies the nominal growth compared to the first quarter of 2022 with the “conditional reopening of casinos and some easing of restriction measures, due to the slowdown” of the Covid-19 pandemic.

The government estimated that it collected 970 million meticais (€14 million) in 2022 from these revenues, having secured 78.9 million meticais (€1.1 million) in the first quarter of that year, which itself was up 12.1% on the same period this year.

For the whole of 2023, revenue from casino taxes in Mozambique is expected to be 891.3 million meticais (€12.8 million), equivalent to 0.1% of all the Mozambique state’s revenue for the year.

According to information from Mozambique’s National Directorate of Gambling, the award of casino concessions in the country requires a share capital of the concessionaire’s commercial company no less than the equivalent of almost $2.7 million (€2.5 million)and an investment of at least $5.5 million dollars over five years.

In order to be authorised to operate games of chance, the concessionaires have to pay the Mozambican state a Special Tax on Gambling, levied on gross gambling revenues, of 20% for concessions of up to 14 years, 25% for concessions of up to 19 years, 30% for concessions of 20 to 24 years, and 35% for concessions of 25 to 30 years.

“Concessionaires must also pay Stamp Duty, corresponding to 50% of the price of entrance tickets to the casinos,” states the National Directorate of Games of Fortune or Chance, although it adds that they “are exempt from paying any other taxes levied on profits from the operation of the game” as well as from import duties on imported equipment and materials intended exclusively for the operation of the casino.

Source: Lusa