Gov’t launches measures to waive tourism tax

The SAR Government is launching measures to reduce or exempt a range of taxes and extend the coverage of tourism tax exemption, which is expected to benefit over 370 tourism service establishments and involve about 379 million patacas in the budget. The measure aims to revive the economy and propel Macau’s travel trade towards revitalization, according to a statement issued by the Macao Government Tourism Office (MTGO).
Besides the categories of establishments listed for tax incentive in the Budget Proposal for the Fiscal Year 2021, the coverage of tourism tax exemption will be expanded to include tourism service establishments such as hotels, night clubs, bars, saunas, health clubs, massage parlours, karaoke lounges and so forth.
According to the provisions of the articles on tourism tax exemption in the Budget Proposal for the Fiscal Year 2021, as amended by Law No. 3/2021, the establishments concerned will be exempt from the tourism tax levied at 5% on their services provided, effective from May 11, 2021 until December 31, 2021.
If tourism service establishments levy tourism tax on consumers unlawfully within the period of tax exemption, upon discovery, it is mandatory for the establishments to be taxed in accord and be subject to fine. With the steady rise in visitor arrivals this year, MGTO said that it is dedicated to the supervision of licensed establishments. LV