Amendments to laws regulating the tourism tax in Macau have been approved unanimously by the Legislative Assembly (AL) upon its final reading yesterday.
The new regulations will commence January 1, 2023 and explains to businesses who operate within integrated resorts and hotels the need to charge this special tax. The amendments also redirect the tax.
Previously, the tourism tax would be collected by businesses from final consumers before being paid to the government via the Tourism Fund. As a result of the amendments, the funds will be paid directly to the government’s general central account.
The change will provide the government, and specifically the Economy and Finance Secretariat, added flexibility as to its allocation, since in the past proceeds from the tax could only be used for projects related to tourism development.
During the debate at the AL, several lawmakers expressed concerns about the amendments, claiming that directing the funds straight to the central treasury might affect tourism development by making it more dependent on the annual allocated government budget.
The amendments comes alongside a series of other measures over previous years by the government of Ho Iat Seng that aim to enforce stricter control over the spending of the Macao Government Tourism Office (MGTO), labelled one of the government’s big spenders, particularly under the government of Chui Sai On.
Control over the spending of the MGTO started with the 2020 administrative restructure when Ho took office and that, among other measures, put the MGTO under the umbrella of the Secretary for Economy and Finance, Lei Wai Nong, and not under the Secretariat of Social Affairs and Culture, as it was during the previous governments of Macau.
Addressing the topic at the AL, Lei also noted that the future tourism tax will be controlled by central finance to make future budgets, expenditures, and the financial resources of the tourism fund clearer and more transparent.
As for the establishments that will need to charge the 5% tax, Lei said that the new law will finally solve existing problems and disputes that were occurring in the past.
The tax mainly applies to services provided to tourists or people in Macau hotels and resorts, including resort restaurants and food and beverage establishments, as well as other services within or outside hotels such as spas, saunas, bars, karaoke, and similar establishments.
Several lawmakers claimed that the rules might still be confusing for some of these sectors and establishments, to which Lei responded that the government will, from now on and until January next year, launch a campaign providing clarification.
