Sri Lanka ranks among world’s highest taxing countries for casinos

Friday, 21 June 2024 03:33 - - {{hitsCtrl.values.hits}}

Says Govt. succeeded in adding 60% of a casino’s turnover to State revenue
Reveals Govt. managed to slap new licence fee of Rs. 500 m, annual renewal fee of Rs. 500 m and 15% turnover tax from casinos
Assures rental income tax to benefit majority of population; calls on public not to harbour any unwarranted fears on it

State Minister of Finance Ranjith Siyambalapitiya

State Minister of Finance Ranjith Siyambalapitiya recently said Sri Lanka has become one of the highest taxing countries in the world for casinos. Speaking in Parliament on Wednesday during the debate on tax amendments related to casinos, he highlighted the Government’s efforts to improve tax collection from casinos. “Under the current regime, the Government has succeeded in adding 60% of a casino’s turnover to State revenue,” he said.

The State Minister also noted that previously, only income tax was collected from casinos, but the new measures include a licence fee of Rs. 500 million, an annual renewal fee of Rs. 500 million and a 15% turnover tax.

However, last week the Committee on Public Finance (CoPF) revealed that despite legal prohibitions, online casinos continue to operate openly in Sri Lanka, depriving the Government’s revenue without facing any repercussions. CoPF directed the officials to expedite the implementation of the necessary laws to establish a regulatory authority, which is crucial for attracting foreign investors and securing the Government’s rightful revenue from the casino business.

State Minister Siyambal-apitiya’s comments come as the Government seeks to raise State revenue and implement fairer tax policies. “By targeting high-income earners and profitable industries such as casinos, the Government aims to distribute resources more equitably and fund public services for the broader population,” Siyambalapitiya added.

Sri Lanka becomes...

He explained that these stringent tax measures are aimed at both increasing State income and discouraging certain businesses.

The State Finance Minister assured that the proposed rental income tax will have a beneficial effect on 90% of the population in Sri Lanka, with only the wealthiest 10% being subject to the tax.

Siyambalapitiya emphasised that the general public should not harbour any unwarranted fears regarding this tax. “The taxes collected from the top 10% are spent on the needs of the remaining 90% of the people,” he stated.

He sought to reassure the public that the tax is designed to be equitable and primarily targets those with higher income.