Operator News
Cambodia – Closures see Cambodia’s tax revenue halved in 2020
By Phil - 22 March 2021
Tax from Cambodia’s 193 licensed casinos dropped by over 50 per cent in 2020 from US$85m in 2019 to US$40m in 2020.
Cambodia’s casinos were closed from April 2 2020 with some reopening in August and others in October. In November, Cambodia approved new legislation on the Management of Integrated Resorts and Commercial Gambling (LMCG), including flat tax on gross gaming revenues of four per cent for VIP gaming and seven per cent for mass gaming with Mr. Phearun expecting tax to improve in 2021.
Deputy Director of the Ministry of Economy and Finance, Ros Phearun, said to The Phnom Penh Pos: “As we’re all too well aware, the COVID-19 epidemic began in late 2019 and persists to this day. It has pulverized all economic sectors, and the casino industry has sustained a crippling blow as well.
“Practically all of our casinos ceased operation in 2020, with only just seven or eight left scrambling to keep their businesses afloat. That’s why our revenue collection has dropped so much. We expect tax collection from our casino industry to improve in 2021 thanks to our compliance with the recently-passed law,” he added. “We’ll collect in a transparent way, but as COVID-19 continues to spread and slash tourist arrivals, we dare not predict what the revenue from this sector will be.”
