SATURDAY, APRIL 20, 2024
Despite financial crisis, CM’s largesse towards casinos
Since March 2020, the small businesses in Goa have been struggling due to the lockdown and have been demanding some kind of compensation from the government but their voices have been ignored.
Be it the bar and restaurant owners; the retail wine shop owners; taxi owners and other small businesses; all of them have been demanding for some sops from the government. However, their pleas have fallen on deaf ears as the government, citing financial crisis related issues, didn’t even consider their demands. As a result, these businesses have been forced to pay their annual renewal fees of their businesses in one go.
On the other hand, the government has flouted all rules and opened up its treasury for the casino operators.
The State government has waived off total revenue of Rs 277.08 crore, which was owed to the State; and moreover, also allowed them to pay the Annual Recurrence Fee (ARF) on a monthly basis.
This occurred even though the there were key voices within the government advising the State against taking such a decision.
The Home Department in its noting had said that “It may also be noted that the casino sector cannot be seen in isolation and affording such relaxations may result in other sectors demanding similar pro rata waivers. Also, this change in the nature of fee structure can result in demands from other sectors for an installment-based payment system for government dues,” the Home department had said.
The Home department had clearly warned that any move to grant the waiver, can result in a revenue loss of Rs 277.08 crore.
“If this request is considered in isolation, then the financial implications of the waiver would be Rs 175 crores (50 percentage of the ARF due). If this request is considered in addition to that listed at para 10 (a), then the combined financial implications for the waiver would be Rs 277.08 crores,” it said.
This would mean that that the resultant revenue from ARF for this financial year would thus only be Rs.72.92 crores, as against Rs 350 crores.
“For the above said reasons, the department does not recommended to consider the request,” it said.
Casinos demands on Payment
of Annual Recurring Fees
As per the government documents, the total revenue due on account of Annual Recurring Fee (ARF) for the Financial Year 2020-2021 is Rs 350 crores.
Since the casino licensees failed to pay the prescribed advance ARF, the Government directed all the Casino licensees to pay the ARF for the period from April 1, 2020 to March 31, 2021.
However, instead of paying the advance ARF, the Casino Licensees (viz. Delta Pleasure Cruises Company Pvt. Ltd, Delta Corp Limited, Highstreet Cruises and intertainment Pvt. Ltd, ctc.) have made representations to the Government seeking exemption from the payment of ARF for the Financial Year 2020-2021, and other concessions, relaxations etc, with the submission that due to the COVID-19 pandemic, their business has been shut down by the Ministry of Home Affairs and the Government of Goa from March 15, 2020.
“Apart from salaries they have other fixed costs whereby vessels, feeder boats, jetties need to be maintained, staff quarters and meals continue to be provided, office rent and jetty usage fees have to be paid,” the operators said.
Also, it was submitted by them that during the period of lockdown they have been paying salary without any revenue being generated, as a result of which, working capital has depleted and they are facing a huge cash crunch.
The Casino Licensees have further informed that, in above circumstances, they are not in position to pay ARF at this time.
