The Western Cape’s five casinos are going to have cough up about R25 million extra in tax a year, according to an amendment to the provincial legislation which governs gambling and racing in the province.
A flat 2 percent tax rate increase will be applied to each of six revenue categories.
The proposal is contained in an amendment to the Western Cape Gambling and Racing Act tabled in the Western Cape Provincial Legislature last week.
A casino that generates less than R14.2 million a year will pay 8 percent on each rand of taxable revenue. Where a casino’s taxable revenue is between R14.2m and R28.4m, its tax will increase from 8.5 percent to 10.5 percent, while a casino generating R71m and more will pay 19 percent, up from 17 percent. The taxes will come into effect as soon as Premier Helen Zille signs the bill into law.
“The additional taxation that will accrue as a result of the proposed amendment will add an additional R25m per annum to the Provincial Revenue Fund. This is money that will be used to improve service delivery… This proposed flat tax is in effect a sin tax on casinos operating in our province,” said Finance, Economic Development and Tourism MEC Alan Winde.
The issue of additional tax on casinos and the relocation of one of the outlying casinos to the Cape Town metro came up early last year.
Winde said the two issues had been separated following consultation with the public. “We have paid due regard to the concerns raised by members of the public,” he said.
Winde’s spokeswoman, Phumzile van Damme, said the provincial treasury would approach the legislature at a later stage to deal with issue of relocation of one of the casinos.
“No decision was taken after public comment was received,” she said.
“It was then decided to have the matter discussed at another time. The Western Cape… Gambling and Racing Amendment Bill only deals with taxes.” - The Cape Times