Betting and gaming industry hit with plethora of tax hikes

The Finance Ministry yesterday announced an increase in betting and gaming taxes. The annual tax for casinos has been increased by 150 percent from Rs 200 million to Rs 500 million from Aug 01.

State Minister of Finance Ranjith Siyambalapaitiya has announced a government decision to charge an entrance fee of 200 US dollars from locals who visit casinos once new regulations come into effect.

The Minister has said the government expects such tax hikes to hinder proliferation of casinos in the country.

The Finance Ministry has said that live betting centres will be taxed one million rupees a year, an increase of Rs. 400,000 from the previous annual tax of Rs. 600,000.

The 10-percent turnover tax will be increased to 15 percent, the Ministry has said.

The annual tax of four million rupees on betting sub-agents is to be increased to five million rupees.

For betting centres that are not live, the annual tax will be increased from 50,000 rupees to 75,000.

After all these taxes, a 40 percent tax would be levied from these business’ revenue or profits.

In addition to these, a bottle of liquor will be taxed at least 75 percent, a cigarette at least 85 percent, and finally a 40 percent income tax from those companies as well, the ministry said.