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Legislative Assembly passes bill widening application of Macau’s tourism tax

Pierce Chan by Pierce Chan
Sun 24 Apr 2022 at 06:19
Legislative Assembly passes bill widening application of Macau’s tourism tax
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The Legislative Council of Macau has passed a bill that will amend how the SAR’s tourism tax will be applied to various tourist-related services.

The “Amendment of the Tourism Tax Regulations” bill was discussed by the Third Standing Committee of the Legislative Council for the first time on Friday, with members asking the government to explain whether the scope of the tourism tax will be changed after the legislative amendment.

The bill, which currently applies a 5% tourist tax on “services rendered” at hotels, health clubs, saunas, massage parlours, karaoke bars and other establishments, would change this to “goods and services rendered directly or indirectly by the relevant establishments and services”.

During the three regular sessions of the Legislative Council, some members have expressed concern over whether this means the scope of the tourism tax would be changed. The bill mentions that the tourism tax should be allocated as government treasury revenue, and some members have been concerned about whether this would change the orientation of Macau’s Tourism Fund.

The Secretary for Economy and Finance, Lei Wai Nong, mentioned in the Legislative Council earlier this year that the purpose of amending the tourism tax is to clarify its “attribution”. “The positioning is still clear,” he said.

The bill includes “goods” within the taxation scope, with Financial Services Bureau director Iong Kong Leong explaining that the scope of goods will include items purchased from minibars provided by hotels, the sale of ferry and air tickets, newspapers and publications which may involve hotels, and other sales services provided indirectly by the industry.

From 2017 to 2019, Macau’s tourism tax brought in MOP$808 million, MOP$940 million and MOP$960 million (US$100 million, US$116 million and US$119 million) respectively. However, the COVID-19 pandemic, coupled with a series of tax-free measures offered by the government, has seen tourism tax revenue fall to MOP$160 million (US$20 million) in 2020 and MOP$128 million (US$16 million) in 2021.

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Tags: Legislative AssemblyLei Wai NongMacautaxTourism Tax
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Pierce Chan

Pierce Chan

With more than five years’ experience working as a journalist in Macau, Pierce is an experienced media operator with strong skills in news writing and editing. He previously worked with Exmoo, first as a reporter covering government, gaming and tourism-related stories, then as a Deputy Assignment Editor helping set the agenda of the day. Pierce is a graduate of the University of Macau.

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