Leisure tax not likely to be imposed on Kangwon Land

A controversial leisure tax is unlikely to be imposed on South Korea’s Kangwon Land amidst weak third-quarter gaming revenue, according to analysts from Daiwa Securities. 

Daiwa analyst Thomas Y. Kwon said: “We doubt Kangwon province’s renewed focus on a controversial leisure tax will amount to much in the near future, and believe any bill would again face strong opposition from various interest groups.”

Kwon also added that in deciding whether to submit the bill or not, the local government will likely take into consideration the current tough business environment, high existing tax rate, and the need for capital expenditure on non-gambling services as well as ongoing investment in the local economy.