Malaysia’s Gaming Commission is planning to increase the existing casino tax in Malaysia from the current rate of 20% to include all new establishments under the classification of” Casino, Raffles and Poker Machine Gambling.” This move is being touted as a means of raising the country’s gambling potential and reducing reliance on external sources for financial support. The Commission is expected to finalize the changes for implementation sometime within the next six months. However, some local business groups are demanding that the revised regulation be reviewed by an independent body before it is implemented.
This latest move by the Commission comes as a direct result of a high-profile corruption scandal that rocked the country in July. One of the scandal’s main victims was the Malaysian Ring Party, which is the governing body of the country’s three casinos: Genting, Resorts World Sentosa, and the London Casino Hotel & Casino. The party is believed to have received a sum of more than US $1 million in cash and gifts from a Chinese tong Po gang leader in exchange for favours. The ringleader was subsequently arrested and is currently awaiting trial. The Commission has since increased the tax rate on all casinos across the country in response to the current public clamour for transparency surrounding the matter.
However, some local business groups argue that increased taxation will not necessarily lead to improved customer service or any other beneficial result. Instead, they say that casinos should instead rely on their marketing strategies and attracting more customers through smart advertising. If the Commission continues with its plan to increase the Malaysia casino tax, business groups say that customers will simply shift their focus to more accessible gambling options in the cities surrounding Kuala Lumpur and Singapore. In the long run, this will only lead to increased costs and an increasingly opaque tax system in Malaysia, according to local business groups.
Commission officials defended the proposal by saying that the increases will help the industry to continue developing. They also said that the increase in tax is needed to cover the costs of recruitment of new staff and construction of new casinos. The Commission is expected to adopt a decision on the increase in April. The proposal was met with fierce opposition from several members of the local legislature and the ruling party.
The increase in the Malaysia casino tax comes at a time when the national economy is undergoing a recovery. Recently, the Reserve Bank of Malaysia (RBM) lowered its growth forecasts for the coming year due to a slowing global economy and a slump in commodity prices. The local economy is expected to contract by just over 1% this year, down from an anticipated growth of about 5% in 2021. While the recession is playing a negative role in the economy, experts pointed out that the recession is also playing a part in the proposed increase in the tax. “This is just the stimulus package doing a bit of patching up in the economy, so that things can begin to pick up again,” said one banking analyst.
The planned increase in the taxes will be seen as protection of the existing legitimate operations of the casinos in Kuala Lumpur and some other cities in Malaysia. This is because the increase in rates will be passed on to customers, thus reducing the income of operators and their profit margins. The increase in the tax rate will also prompt developers to shift to more profitable land and structures, resulting in lower land and building costs. These measures are being imposed by the Malaysian Government as it looks to prevent any potential losses in the country’s booming real estate market.
The proposed increase is part of the government’s plan to protect its share of the real estate market. Recently, the Malaysian Property Development Corporation (MPDC) was given authority by the government to operate independently of the government. The move, however, has sparked fierce debates among Malaysians as to the reason for the increased supervision of the privately owned business. Some argue that the move is to protect the interests of the government from monopoly control of the property market. Others argue that it is a necessary move to regulate the functioning of the economy in order to ensure that the country’s booming economy benefits everyone.
Whether the proposed casino tax hike is good or bad, it will surely impact the way people play their favorite casino games in Malaysia. Players will have to decide for themselves if the increase in prices is worth the added cost and danger, or if it is a justified move to protect the interests of the public from bad business deals. With a growing economy and stable real estate market, Malaysia is a great destination for investors and tourists. With time, this beautiful tropical country will become a favorite tourist spot for people all over the world.
The post Malaysia Casino Tax Hike appeared first on Trusted Online Casinos Malaysia 2021.
source https://trustedmalaysia.casino/malaysia-casino-tax-hike/
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