Malaysia Casino Tax Hike – Why You Should Not Worry About It

A Malaysia tax authority has just announced a revised Gaming Implementing Law, which includes a major Malaysia casinos and gaming zone’s tax hike. This move comes after the previous GDI Malaysia Prime Minister, Dr Mahathir bin Mohd ram, abruptly quit the party following a meeting with the Chinese Government. The meeting resulted in his decision to form a new party in the name of “Nursery Development Islam” (NDI). The Nursery Development Islamic is part of the Muslim Religious textile industry in Malaysia, an industry that forms a major portion of GDP. This is the same industry that the Chinese are looking to exploit through the Malaysia gambling industries. For the Chinese they see this as a gold mine and a means to get into a multi-cultural country such as Malaysia, a country that is relatively well developed compared to China.

The Gaming Implementing Law previously set a maximum tax rate of 40% on gaming and gambling activities including all income derived from outside sources. The current law now includes all income derived from gambling facilities. The Nursery Development Islamic’s stated reason for the high taxation is to ensure fair practices among gambling operators and to protect the Malaysian hospitality industry from terrorists and looters. Although the Nursery Development Islamic will have control over who uses their facilities it does not enjoy a monopoly. Gambling operators can choose whether or not to pay the increased tax, as long as they inform the tax office before doing so.

With regards to the Malaysian casinos and gambling facilities directly affected by the new law there are mixed feelings. Some in the gambling community feel this is an unfair advantage given to them by the Chinese, stating that it is essentially a government handout. Others, including the Malaysian government, state that this increase in the casino tax is needed due to the continually rising cost of building new casinos and the continued weakness of the real estate market, which makes it difficult to earn revenue from existing properties.

There are many arguments to be made in support of the new tax increase. However, the Malay, Chinese and Indian communities have been very outspoken against it, claiming that it unfairly benefits them due to the existing economic situation. On the other hand, the government argues that this increase will help fund the ongoing reconstruction and improvement of the Malaysia’s gambling facilities. Ultimately, the argument comes down to the individuals making decisions about what to do with their money.

Recently there has been a growing demand among tourists to Malaysia’s all inclusive resorts and casinos. Many of these properties include multiple games including slots and table games. Due to the popularity of these gambling facilities the influx of tourists has greatly increased. This is where the problems begin. Because more players mean more income for the various casinos, there have been efforts to increase gaming taxes in order to keep operating costs down.

Many Malaysians believe that the increase in the Malaysia casino tax is unfair, given that they paid taxes on amusement and gaming activities long before the boom of the Malaysian economy. The argument goes something like this: since these people paid taxes on gaming and amusement, then why should the government increase their tax when there is so much more money to be made by casinos? Malaysia’s tax authorities to counter this argument by pointing out that state governments often receive a higher amount of income from the casinos than the national government. They further point out that the increase in the Malaysia casino tax was meant to address the lack of resources for the national government, while allowing the private sector to increase its revenue. In short, the increase was meant to alleviate the financial problems of the private sector.

With that said, critics of the increase in the Malaysia Casino Tax raise the same questions of efficiency and fairness that they had with the previous tax hikes. While it may seem as though the government has failed its duty to protect its citizens from increases in their taxes, those who disagree with the increase feel that the problem lies with the government rather than the gamers. After all, how could the government increase its revenue without ensuring that the casinos are running at maximum capacity and therefore leaving people with more money to enjoy their gambling activities? They argue that the increase in the tax is actually harming the private sector more than helping it.

This is a very delicate argument and one that pit the Gaming authority against the private sector and the Malayans who claim that they have suffered greatly because of the Malaysia Casino Tax hike. There has been an increase in the number of people trying to get out of debt through a settlement deal. The number of people looking into ways of avoiding paying their taxes has also significantly risen, causing the authorities to make more money from the increase in the taxation. However, the increase in the price of gambling is hardly worth the damage that the tax hike has done to the Malayans.

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