Mozambique: Taxes paid by casinos rise 12.8% in first three quarters of 2024

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Mozambique: Taxes paid by casinos rise 12.8% in first three quarters of 2024

2:12 CAT | 20 Nov 2024

File photo: Lusa

Mozambique collected 317.4 million meticais (€4.7 million) in the first nine months of the year in taxes paid by casinos, an increase of 12.8% year-on-year, though below forecasts.

According to data from the economic and social report on the implementation of the State Budget for the three quarters of this year, Mozambique, from January to September 2023, collected 281.5 million meticais (€4.1 million) relating to the Special Tax on Gaming.

Despite the year-on-year growth, this amount represents only 25.7% of the revenue that the government hoped to collect from this tax in 2024 (almost 1,235 million meticais/€18.3 million(.

Taxes paid by casinos in Mozambique during this period represented just 0.1% of all state revenue, according to the same report.

Five casino concessions in Mozambique, “private sector-driven ventures”, generated investments of US$36 million, President of the Republic Filipe Nyusi announced on 8 August of this year.

President Nyusi explained at the time that these were “significant investments in the tourism sector”, such as casino and slot machine concessions in Maputo, Beira, Tete, Nampula, Matola and Pemba.

According to information from the National Directorate of Gaming of Mozambique, the granting of casino concessions in the country requires the concessionaire’s commercial company to have a share capital of no less than the equivalent of almost US$2.7 million and to show investment, over a period of up to five years, of at least US$5.5 million.

To operate games of 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.

“Concessionaires must also pay Stamp Duty, corresponding to 50% of the price of entry tickets to casinos,” establishes the National Directorate of Games of Chance, although they “are exempt from paying other taxes on profits from gaming operations”, as well as import duties on imported equipment and materials intended exclusively for the operation of the casino.

Revenue from taxes paid by casinos in Mozambique grew 21.9% from 2022 to 2023, to 371.1 million meticais (€5.5 million), according to data from the Ministry of Economy and Finance.

Source: Lusa