Summit warns of Russian tax hike

Summit Ascent Holdings, the operator of Tigre De Cristal has warned investors of a potential doubling of gaming tax rates in Russia.

Under a draft bill submitted to the State Duma, the government proposed to raise the maximum tax leviable per gaming table to RUB250,000 from RUB125,000 and the maximum tax leviable on gaming machines to RUB15,000 from RUB7,500.

According to a filing from Summit Ascent Holdings, the draft bill has gone through the First Reading by the State Duma, with the Second Reading due to be held on November 10, 2017.

For a new law to be enacted in the Russian Federation, the draft bill has to pass through three readings in the State Duma and finally be approved and signed off by the President.

“Therefore, it is too early for the board of directors of the Company to predict whether the above proposed changes will become legally enforceable,” said the company.

Summit said it has been in contact with representatives from the Primorsky Government regarding the tax changes, and said it is the current intention of the Primorsky Government to maintain the tax rates at existing levels should the bill be enacted.

“However, there is no guarantee that the Primorsky Krai Duma would necessarily approve such a proposal,” warned the company.