Mozambique: Casinos pay four million euros in taxes in nine months

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Mozambique: Casinos pay four million euros in taxes in nine months

10:36 CAT | 28 Nov 2023

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

Taxes paid by casinos in Mozambique from January to September rose to 281.5 million meticais (€4.0 million), up 16.7%, compared to the same period in 2022, according to official data.

According to the economic and social balance of the execution of the State Budget until the end of the third quarter of 2023, to which Lusa had access this Monday, the collection of the Special Tax on Gaming in these nine months compares with 241.1 million meticais (€3.4 million) in the same period of 2022.

Even so, it is only 31.6% of the amount budgeted by the government as a target for collection this year with that tax: 891.3 million meticais (€12.8 million), equivalent to 0.1% of all revenues of the Mozambican state expected for 2023.

Revenue from this tax had already grown 12% in the first quarter, with the government justifying the performance with the “conditioned reopening of casinos and some easing of restriction measures, due to the slowdown” of the Covid-19 pandemic.

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

For the effective exploitation of gambling , gambling concession holders must pay the Mozambican state the 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.

“Concession holders must also pay the Stamp Tax, corresponding to 50% of the price of entry tickets to the casinos,” establishes the National Directorate of Gambling , while adding that these “are exempt from paying other taxes that affect profits from gambling”, as well as import duties on imported equipment and materials intended exclusively for operating the casino.

Source: Lusa