🎰 Government gives sweetheart deal to casinos by lowering taxes

Happy Monday!

This week we cover Suriname’s choice to lower taxes on casinos while raising taxes on its people, TotalEnergies’ announcement this week, and further criticism on the VAT tax amendments.

Suriname lowers tax for casinos in sweetheart law

• Income tax for casinos was reduced from 50% to 40% announced by Minister Kenneth Amoksi.

• The Lottery Act passed with 29 votes in favor and 0 against, Gambling Supervision and Control Act with 30 votes in favor and 1 against, Hazard Games Act with 28 votes in favor and 2 against.

• Government did not explain the reason for the reduction in casino taxes.

• Changes in laws include no gambling outlets in supermarkets and a 500-meter buffer around youth centers.

• Proposal to ban gambling establishments near schools and places of worship was not accepted by the government.

• Plans also include reduction of retail outlets by 35% after the passage of laws.

• The government has received criticism for choosing to lower taxes on casinos while at the same time raising taxes and prices for the country’s poorest.

TotalEnergies CEO to visit Suriname this week with ‘good news’

• Patrick Pouyanne, the general manager of TotalEnergies, plans to visit Suriname soon, hinting at potential positive developments in the oil sector.

• TotalEnergies has identified a significant oil field in Suriname, which could lead to a major deepwater development project.

• The company is keeping the specific details about the oil field confidential for now but intends to discuss them with the Surinamese president.

• Block 58, where TotalEnergies operates with a 50% partnership with Apache, has seen five commercial oil discoveries since January 2020.

• Block 58 is believed to hold substantial oil reserves, potentially as much as 6.5 billion barrels, with the Sapakara discovery alone estimated to be worth over 200 million barrels of oil.

The Trade Union Confederation C-47 strongly opposes changes to the VAT law, considering it a concerning move

• C-47 believes that the amendment to the VAT law will lead to increased costs for goods and services, impacting categories that were previously VAT-free.

• The organization insists that the government should reconsider this change, emphasizing that there are alternative ways to generate revenue.

• A committee was formed to review the VAT law, but it was established late, after an initiative for changes was submitted by Assembly members Ronny Aloema and Evert Karto.

• The committee had disagreements with the proposed changes, including VAT on games of chance, fuel, casinos, and insurance.

• With the change, previously untaxed goods and services will now have a 10 percent VAT, which may indirectly raise prices for consumers.

• Finance Minister Stanley Raghoebarsing claimed that the trade union movement supported the change, but C-47 strongly contradicts this claim.

• C-47 suggests that the government should target sources of revenue like casinos, gambling, cambios, and increase taxes and royalties in the gold sector, rather than burdening workers with more VAT.