Mozambique: Government aims to increase foreign exchange flow by US$500 million
Mozambique: Taxes paid by casinos reach €3.2 million in H1
1:30 CAT | 27 Aug 2024
FILE - For illustration purposes only. [File photo: Lusa]
The revenue from taxes paid by casinos in Mozambique increased by 14.6% in the first six months of the year, year-on-year, to 226 million meticais (€3.2 million), a figure nevertheless below forecasts.
According to data compiled on Tuesday by Lusa from the economic and social report on the implementation of the State Budget for the first half of the year, revenue from the Special Tax on Gaming compares with the 197.3 million meticais (€2.8 million euros) collected from January to June 2023.
Despite the year-on-year first-half growth, this is only 18.3% of all revenue that the Government estimates to collect from the gaming tax in 2024, a figure of almost 1,235 million meticais (€17.3 million).
Taxes paid by casinos in Mozambique in the first half of the year represented just 0.1% of all Mozambican state revenues, according to the same report.
Five casino concessions in Mozambique generated investments of US$36 million (€32.3 million), the President of the Republic, Filipe Nyusi, announced in parliament on 8 August.
These “private sector-driven ventures” that the government encouraged “resulted in an investment of just over US$36 million,” Nyusi said at the opening of the 10th edition of Fikani, the Mozambique International Tourism Fair.
On the same occasion, the head of state explained that these are “significant investments in the tourism chain”, such as the casino and slot machine concessions in Maputo, Beira, Tete, Nampula, Matola and Pemba.
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 the share capital of the concessionaire’s commercial company to be no less than the equivalent of almost US$2.7 million (€2.5 million) and an investment, within five years, of at least US$5.5 million (€5.05 million).
For the effective operation of games of fortune or chance, concessionaires must pay the Mozambican State the Special Tax on Gaming, levied on gross gaming revenues, of 20% for concessions up to 14 years, 25% for concessions up to 19 years, 30% for concessions of 20 to 24 years and 35% for concessions of 25 to 30 years.
“The concessionaires must also pay Stamp Duty, corresponding to 50% of the price of entry tickets to the casinos,” establishes the National Directorate of Games of Fortune or Chance, although adding that they “are exempt from paying other taxes on profits from the operation of the game”, as well as import duties on imported equipment and materials intended exclusively for the operation of the casino.
The income from taxes paid by casinos in Mozambique had grown by 21.9% in 2023, compared to the previous year, to 371.1 million meticais (€5.3 million), according to data from the Ministry of Economy and Finance previously reported by Lusa.
The collection of the Special Tax on Gaming in 12 months of last year compares with 304.4 million meticais (€4.4 million) in 2022.
Source: Lusa
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