Sri Lanka- New tax to replace entrance fee in Sri LankaBy Phil - 30 November 2015
Sri Lanka’s four casinos will be hit with increased taxation to counter the abolition of the entry charge brought in earlier in 2015. Casino license fees will though be doubled as a result with a new 25 per cent tax on gaming profits also being introduced.
Minister of Finance, Ravi Karunanayake, confirmed the move, saying: “The present entry fee of US$100 per person who enters casino entertainment will be removed. The present annual levy of LKR200m for carrying on the business of casino will be increased to LKR400m per year.To avoid any undue benefit by tobacco, liquor and casino industries from corporate tax revisions and keeping in line with government policy of creating a society free of tobacco, liquor and betting and gaming, I propose to impose a surtax at the rate of 25 per cent of income tax liability.”
The new taxation levels follow the decision taking by government earlier in the year to impose a one-off tax of LKR1bn on each of Sri Lanka’s four casinos.