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The Philippine Amusement and Gaming Corporation (PAGCOR) just announced that they have reduced the gambling tax effective April 1st. Though the change is temporary, it is good news for the casinos based in Entertainment City in Pasay, as they got a 30% income tax on all casinos one year ago.
The statement said that Travellers International Hotel Group, Bloomberry Resorts, MCE Leisure and Tiger Resorts had made an agreement with PAGCOR to adjust the fees paid to a mere 10% on gross gaming revenues.
Before the agreement was reached, the casinos paid 15% tax on the high roller tables, which will now be lowered to 5%, while they paid 25% tax on gaming from all non-high roller games and slots, which will now be lowered to 15%.
The deal is seen to benefit the casinos as the 30% income tax has made it difficult for the casinos to operate with a profit. Prior to the 30% income tax, the tax were only at 5% which was called “franchise tax”
“Such solution not only preserves for the Philippine Government the financial benefits that it already derives from the Provisional Licenses but also validates PAGCOR’s commitment to uphold and abide by the terms of the Provisional License,” the statement read, but notes that it is only effective until they will correct it, withdraw it or restrain it.
“The parties agreed to revert to the original license fee structure under the provisional licenses in the event the BIR action is permanently restrained, corrected or withdrawn,” the statement added.
“We welcome this initiative and express our sincerest gratitude to the Government of the Republic of the Philippines and PAGCOR for their continuous support in helping us realize our gaming, leisure and entertainment complex in Manila,” President of Melco Crown Philippines, Clarence Chung said in a statement.
“The development of City of Dreams Manila is progressing well and we firmly believe our integrated leisure and entertainment destination resort will play a key role in furthering the ambitions of the Philippines in establishing the country as a major leisure and tourism destination in the region,” he noted.