The government in Japan has been facing a lot of opposition ever since it announced its plans to tax casino winnings and proposed a “withholding taxation policy.”
The lawmakers not only from the opposition but also from the ruling party voiced their concerns and appeared to be divided on the issue.
However, a Bloomberg report says according to the documents accessed by the media house, Japan’s government will most likely withdraw its plans to tax casino winnings.
What Critics Say
The Japanese government has been acting under pressure; especially after surveys show that a majority of the people in the country are not in favor of having a casino gambling industry.
After the government planned to tax casinos on their winnings, it was met with fierce criticism – so much so that even the lawmakers from the ruling party seemed divided on the issue.
Those opposing the move to tax casino winnings or imposing a “withholding tax” system are concerned that the tax policy could turn off investors and gambling operators. They say that since it would be no longer lucrative for both the operators and even the patrons of the prospective casino resorts, they may flock to neighboring destinations like Macau, South Korea, and the Philippines amongst others.
The move to tax winnings will not allow the casino industry in Japan to reach its full potential and therefore would be bound to fail to deliver on the projections based on which the government is promising increased tax revenues.
Hokkaido Pulls Out, Investors Cautious
While it would be too early to jump to the conclusion that the government’s decisions to impose tax casino winnings have done irreparable damage disenchanting investors, what we have seen is reports claiming that stricter requirements and the withholding tax policy are beginning to do the damage.
Recently, Hokkaido pulled out of the race to host a casino in Japan citing environmental concerns. Some top operators that were earlier interested in a casino license in Japan have said that they have dropped plans to develop a casino in what could potentially be the world’s third-largest casino gambling market.