Macau reports decline in GGR taxes
Macau will collect an estimated $3.70 billion in casino gambling taxes in 2020, 71.1% less than originally expected.
Macau's GGR failure in 2020
Having to deal with the worst economic downturn in recent history, Macao Government reported that he expects to collect an estimated 29.46 billion MOP ($3.70 billion) in taxes on casinos of the administrative region in 2020, on the basis of a budget revision.
Based on this revision, the government expects 71.1% less tax collection for 2020. Than the projections for this year in November 2019., He revealed the document, gave GGRAsia.
The second revision was lowered by another 42%, compared to estimates from an earlier revision in April, which the city would have collected in taxes, but the prolonged post-pandemic recovery and lack of travelers weakened the casinos and deprived them of revenue.
The change was approved by the Legislative Assembly on Wednesday, making it the official and final prospect for the special administrative region. To cope with the pandemic and lack of revenue, the government will have to reach deep into your pocket and allocate 8.1 billion MOP to cover expenses in December.
Collection of receivables
In its revised budget, Macao indicated that it would collect an estimated 210 million MOP taxes on municipal garbage operators, down 41.7% from the government's original forecast. Macau may consider shifting the current gross gaming revenue tax (GGR) on casinos to 39% from 35% currently, suggests GGRAsia, citing the numbers collected.
However, the publication cautions that the tax collection figures are not definitive as there is a discrepancy between the timing of GGR tax collection and government recording and publication.
As of November 30 Gross gaming revenue in Macau for the year was 52.62 billion MOP, That is 80.5% less than a year earlier.
There is no room for panic
As Macau came under pressure to adapt and change, a rumor circulated that People's Bank of China (PBC) may seek to introduce digital yuan or e-juan as the only option for purchasing chips at Macau casinos.
The news, which circulated the day before it was rejected by the regulator and Macau authorities, suggested that China would try to more tightly control the flow of money associated with casinos in the city, which of course will not happen.
In the meantime JP Morgan Securities (Asia Pacific) Ltd warned that Macau could lose its entire VIP segment if e-juan is introduced, citing the reluctance of high-rollers to reveal their full identities to the Chinese government.
Macau is at a crossroads, not only because the city must warn of the worst economic downturn in recent history, but also because the pandemic has served as a wake-up call for authorities to diversify their reliance on gaming revenue.
From the mass premium segment to tourism and sporting events, Macau wants to boost its economy in a way that doesn't involve too much gaming revenue, and this will be one of its main goals in 2021.