Vietnam’s Finance Ministry is proposing a 10% tax on casino winnings over US$475 (VND10 million) despite a warning from a top official that it will discourage gamblers from patronizing the country’s foreigners-only casinos.
A report on the English-language Web site of Tuoi Tre News says the levy is included in a draft revision of the tax code being circulated by the ministry and is scheduled to take effect today, so it will apply to the new Grand – Ho Tram Strip casino opening later this month on the South China Sea coast about 70 kilometers from Ho Chi Minh City.
The tax has come under fire from the top revenue official in the northern province of Lao Cai, home to a casino located in the Lao Cai International Hotel that caters to Chinese gamblers. Speaking at a recent session of the National Assembly, Nguyen Thi Kim Yen said casinos already are paying “very considerable” corporate and consumption taxes and warned that the additional tax will drive foreigners away.
The country’s eight casinos are growing revenues at a robust annual average of 10-15% a year, according to the Finance Ministry. They paid VND1.5 trillion in total taxes (US$72 million) in 2011.
The casino at the Lao Cai International, owned by Donaco Singapore, is paying upwards of $10 million a year in tax (VND100 billion-200 billion), Ms Yen said.
Donaco is controlled by family members of Genting Group Chairman Lim Khok Thay.
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