Mozambique: Casinos 2023 tax revenue meets 41.6% of target

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Mozambique: Casinos 2023 tax revenue meets 41.6% of target

8:35 CAT | 23 Feb 2024

File photo: Lusa

Revenue from taxes paid by casinos in Mozambique increased by 21.9% in 2023, compared to the previous year, to 371.1 million meticais (€5.3 million), according to official data.

According to the economic and social balance of the execution of the 2023 State Budget, to which Lusa had access this Friday, the annual revenue from the Special Tax on Gaming compares with 304.4 million meticais (€4.4 million) in 2022.

Even so, it is only 41.6% of the government target of 891.3 million meticais (€12.9 million), equivalent to 0.1% of all Mozambican state revenue forecast for 2023.

According to information from the National Directorate of Games of Fortune or Chance of Mozambique, the granting of concessions for casinos in the country requires share capital of the concessionaire’s commercial company never lower than the equivalent of almost US$2.7 million, and investment of at least US$5.5 million (€5.06 million) within five years.

For the effective exploitation of games of chance, concessionaires must pay the Mozambican state a Special Tax on Gaming, levied on gross gaming revenues, of 20% on concessions up to 14 years old, 25% on concessions up to 19 years old, 30% for concessions of 20 to 24 years and 35% for concessions of 25 to 30 years.

“Concessionaires must also pay Stamp Tax corresponding to 50% of the price of entrance tickets to casinos,” the directorate lays down, while noting that they “are exempt from paying other taxes that apply on profits from gambling”, as well as import duties on imported equipment and materials intended exclusively for operating the casino.

Source: Lusa