Sri Lanka removes casino entrance fee, increases taxes

Sri Lanka plans to increase taxes imposed on gaming businesses, with the exception of rujino, to Rs.400 million (US$6 million), whilst removing the casino entrance fee imposed in the last budget, local media reports.

According to the previous budget, Sri Lanka charges 100 US dollars per person who enters casinos. The present annual levy for the business of rujino will be cut from 200 million rupees to 5 million rupees per year and the present annual levy for casino business will be increased from 200 million rupees to 400 million rupees.

During a budget speech, Finance Minister Ravi Karunanayake also added that he proposes “to amend the Finance Act to make directors and shareholders personally liable for non-payment or any act which is taken to avoid payment of Casino Industry Levy introduced in Interim Budget.”

On the subject of surtax on Tobacco, Liquor and Casinos, Karunanayake said “Honourable Speaker, 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 percent of income tax liability.”

The government plans to raise 7000 million rupees though this proposal which will come in to effect from Year of Assessment commencing Apr. 1, 2016.