- Japan’s ruling LDP Party and its coalition partner Komeito agree to issue three IR licenses.
- LDP had previously called for four or five IRs, while Komeito preferred two or three.
- More licences may be issued after seven years.
- The parties may have settled on a flat tax rate of 30% instead of a sliding tax rate from 30% to 50%.
- No final agreement yet on entry fees (current proposals range from ¥5,000 to ¥8,000).
Japan’s ruling Liberal Democratic Party (LDP) has reached an agreement with its coalition partner Komeito to issue licenses for three integrated resorts.
According to Jiji Press, the two parties reached a compromise over the weekend, with the LDP having previously called for four or five IRs while Komeito preferred two or three when the first round of licenses is issued following the passage of the IR Implementation Bill later this year.
As part of the agreement, lawmakers will be permitted to review the number of licenses with the prospect of issuing more after seven years as opposed to the originally planned 10-year moratorium.
It has also been suggested that the parties have settled on a flat tax rate of 30%. Japan had previously touted a sliding tax rate starting at 30% for operators with annual revenue of up to ¥300 billion (US$2.8 billion), rising to 40% for revenue between ¥300 billion and ¥400 billion (US$3.7 billion) and up to 50% for revenue between ¥400 billion and ¥500 billion (US$4.7 billion).
However, no final agreement has yet been reached on entry fees with Komeito still pushing for an ¥8,000 fee while the LDP doesn’t want to go above ¥5,000.
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