Sunday, 17 Feb 2019

Preferential treatments for casino business to be restricted

Updated at Wednesday, 16 May 2018, 17:11
The Hanoitimes - The revised draft law on special administrative - economic units will restrict preferential treatments on casino integrated projects, informed the Standing Committee of the National Assembly.
Previously, the draft law proposed an exemption on land and water surface rental fee for casino projects.
Illustration photo.
Illustration photo.
A recent revised draft law now regulates the exemption is supposed to last for a maximum of 30 years, but only a half of the period for special administrative-economic units at Van Dong and Bac Van Phong, and a maximum of 20 years , with half of the period for Phu Quoc. 
The revised draft law also set incentive on corporate tax at the rate of 17% in 5-year period, which is applicable in case the project generating profit subject to tax payment until 2030.
Additionally, the revised draft law now reduced incentive on excise tax, regulating at the tax rate of 15% in 10 years and applicable for projects meeting requirements of strategic investors. 
The Ministry of Finance (MoF) said in its appraisal report that the necessary capital investment to set up 3 economic zones to be at VND1.570 trillion (US$69 billion).
Consequently, Van Don special economic zone (Quang Ninh province) would need VND270 trillion (US$11.83 billion) in period 2018 - 2030, in which the domestic- and foreign-funded capital are divided half and half. 
Total social capital investment to develop 4 main areas of the Bac Van Phong special economic zone (Northern Van Phong, Khanh Hoa province) in period 2019 - 2025 under the calculation of Khanh Hoa province is VND400 trillion (US$17.54 billion). By 2025, it would need at least VND45 trillion (US$1.97 billion) from the state budget for investment phases.
Following the plan for Phu Quoc (Kien Giang province) to become a world class special economic zone, it is estimated that the required total social capital investment would be VND900 trillion (US$40 billion) in period 2016 - 2030, in which domestic-funded capital accounts for 59% and foreign-funded at 41%. 
A common thing between the 3 proposals is request for preferential treatment. For Van Phong special economic zone, Quang Ninh province suggested to keep 100% the state budget revenue generated from the special economic zone until 2030. 
In the first 5 years of the special economic zone's operation, the province requested to keep 25% of the domestic revenue (VND2 trillion or US$87.6 million per year).
For Phu Quoc, Kien Giang province proposed resort complex with investment over US$300 million to have small-scale casino integrated. However, the MoF maintained its stance that a casino-integrated resort complex would have to mobilize at least US$2 billion. 
Recent opinions suggested to reconsider the minimum capital requirement of US$2 billion to integrate a casino into an investment project, which was stipulated in the previous version of the draft law. 
Ngoc Thuy
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