Genting Malaysia will act to mitigate impact of higher casino licence fee, duties
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Genting Malaysia Bhd is assessing the full implications of additional taxes announced in Budget 2019 and will take appropriate action to mitigate their impact. The action includes a review of its marketing expenditure as well as cost structure, it told the stock exchange.
Genting Malaysia said it has been advised by the Finance Ministry that the annual casino licence fee will be revised from RM120 million to RM150 million and casino duties will be revised to up to 35% of gross collection.
“The increase in casino duties represents a 10 percentage point increase over existing duty rates. The amendments will take effect from Jan 1, 2019,” it added.
On Bursa Malaysia today, Genting Malaysia closed 3 sen or 0.83% higher at RM3.64 after hitting limit down on Monday.
Questions & Answers
Q.What specific financial increases will Genting Malaysia face due to the new budget?
What specific financial increases will Genting Malaysia face due to the new budget?
The annual casino licence fee will increase from RM120 million to RM150 million. Also, casino duties will be revised to up to 35% of gross collection, marking a 10 percentage point increase over existing rates.
Q.When will these new financial changes for casinos come into effect?
When will these new financial changes for casinos come into effect?
The amendments to the casino licence fee and duties will take effect from January 1, 2019. Genting Malaysia was advised of these changes by the Finance Ministry.
Q.What steps does Genting Malaysia plan to take to address the impact of these new taxes?
What steps does Genting Malaysia plan to take to address the impact of these new taxes?
Genting Malaysia is assessing the full implications of the additional taxes. It plans to review its marketing expenditure and its overall cost structure to mitigate the impact of the increased fees and duties.
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