Gov’t may set casino tax rate at 30%

February 20, 2018

Tokyo- The Japanese government is considering collecting as tax some 30 percent of revenue at operators of casinos to be set up as core facilities of so-called integrated resorts in the country, informed sources told Jiji Press on Monday.

Revenue from the tax, excluding a portion to be used to cover administrative costs at a casino regulatory body, will be equally split between the central government and the governments of casino-hosting local communities.

After discussions with the ruling Liberal Democratic Party and its Komeito ally, the central government hopes to include a specific tax rate in planned legislation related to the operations of integrated resorts, which is expected to be submitted to the current regular session of the Diet, Japan's parliament, informed sources said.

For casino operators whose annual revenue exceeds 300 billion yen, the government may impose higher tax rates on revenue in excess of the amount, the sources said.

Specifically, it plans to set the rate at about 40 percent for the portion from over 300 billion yen to 400 billion yen and at about 50 percent for the portion from over 400 billion yen to 500 billion yen, the sources said.

According to estimates by the Japanese government, the burden ratio from such casino tax stands at some 20 percent in the US state of Nevada, where Las Vegas is located, some 30 percent in Singapore and some 40 percent in Macau.

The government believes that the casino tax rate in Japan should be set at a level that meets the needs for securing funds to be used for steps against gambling addiction and social security measures and helping casinos in the nation survive the competition with overseas casinos, according to the sources. Jiji Press