Edmund Ho, Chief Executive of the Macau SAR, stressed that there is actually no margin left to reduce the 35 percent casino gross revenue taxation.
During his first public comment on the situation of the SAR government about the liberalization of the gaming industry, Edmund Ho indicated that the proposed tax rate for local and overseas investors is the same, he is confident that it would not jeopardize the interest of the overseas consortiums in bidding for the casino licenses.
Furthermore, according to the evaluation of the related authorities, the new comers may gain less in the initial period. But as a long-term investment, Ho considered that it is still a profit-gaining industry if the operators can manage well.
Being an important industry of the SAR, as well as the main source of revenue income, the government's policy is to let the business operating under reasonable circumstances, in order to gain more profit for public interest. Ho stressed that it would be an advantage either for the entire economic or public benefits.
While asked whether the requirement of the bill that the managing director of the future operators should be a permanent local resident holding at least 10 percent of the company's capital would be an obstacle for the foreign investors, Ho said that the related article is just to let the communication between the government and the future operators be going on smoothly, adding that the managing director is familiar to the reality of the SAR.
The Chief Executive reaffirmed that gaming industry is a special business. The authority will provide as more information to the Legislative Assembly as possible, and seriously concerning the opinions of the legislators.
Ho claimed that the SAR government is confident to solve all the problems under the liberalization of the gaming industry and would not allow anyone to agitate Macau's public order.
The bill on the new "gaming industry regime" was passed in general terms on July 26 by the Legislative Assembly, which will be discussed article-by-article over the next few weeks.
