Under a draft circular, a personal income tax rate of 10 percent will be applied to gamblers who win over VND10 million (US$480) at casinos, but a tax official said such a tax is unadvisable. Such taxation will discourage foreigners from frequenting the gambling places that are set up in Vietnam for foreigners only, a tax official said. The proposal was raised at the ongoing fifth session of the 13th National Assembly by Nguyen Thi Kim Yen, head of the Tax Department of northern Lao Cai Province, where a casino is operating. Yen voiced her opinion in response to a draft circular issued by the Finance Ministry to provide guidance on the implementation of a number of articles of the revised Law on Personal Income Tax that will take effect on July 1. According to the circular, a personal income tax rate of 10 percent will be applied on winners whose winning amounts are higher VND10 million (US$480) when they gamble at casinos from July 1. However, Yen said the taxation is unadvisable since no country in the world levies personal income tax on gamblers. If the tax is applied at casinos in Vietnam, it will deter foreigners from gambling there, affecting the operating results of casinos, Yen said. Currently, the payment amount of corporate income tax and special consumption tax collected from casinos are very considerable, she said. In Lao Cai alone, the payment of such taxes amounts to VND100-200 billion (US$9.62 million) per year, Yen added. According to the Finance Ministry, the annual growth of casinos is 10-15 percent on average and they paid their obligations, worth VND1.5 trillion ($72 million), to the State budget in 2011. The country now has eight large casinos in several localities, including Hanoi, Hai Phong, Lao Cai, Quang Ninh and Da Nang. Under Vietnamese laws, only foreigners or overseas Vietnamese are allowed to gamble at casinos.