TAX ON BETTING.

Hawera Star, Volume XLVI, 16 April 1926, Page 7

TAX ON BETTING.

MR. CHURCHILL’S PROPOSAL

BY CABLE—PEESS ASSOCIATION—COP YEIGHT. Received 1.25 p.m. to-day. LONDON, Ap.il 14 Political circles agree that Mr. Churchill’s Budget .will introduce ■-* tax on credit and racecourse cash, belling. It is expected that this will realize six to ten millions. —Aus. and N.Z. Assn.

THE EXPECTED REVENUE

The British Government is carefully considering a Treasury proposal fo'f taxing credit betting Dy means of a special stamp duty. This scheme, which is said to be looked upon with favour by a majority of the Cabinet, would avoid what yvas regarded as one of the most objectionable features of the plan of the Betting Tax Committee, namely, the sale of post office of books of betting tickets. <. very credit betting transaction would have to be validated by a stamp of a certain value, varying according to the amount of the bet. .This, it is considered, would entail giving both parties the right to recover in case of default. It is argued that the State could’ not reasonably impose a direct duty on betting and continue to deny those who bet certain legal rigths. In the event of the plan being adopted an amendment of the Gaming Act would almost certainly be made. Such an amendment would deprive the defaulter of the right he now has of pleading the Gaming Act in order to evade payment of his losses. It is stated that the Treasury has prepared an estimate of the yield of such a system of taxing betting, and that it is substantially in excess of the estimate of £5,000,000 per annum made by the Betting Tax Committee. The yield is estimate to be near £8,000,000 a year, because the basis of the Betting Committee’s calculation —namely, a turnover of £200,000,000 on betting—is regarded as an underestimate.

A contributor to one England paper says that the problem is not so perplexing as it is supposed to be. He suggested the following method for starting nrice transactions: First license the bookmaker, so that clients can go to his office free from the idea of police vigilance. The Government could issue rolls of adhesive betting stamps, like entertainment tax tickets. The bookmaker, of course, would buy these rolls, and so the tax would virtually collect.itself. , When the backer made a bet his receipt from the bookmaker " ould bear a tax stamp according to the aggregate amount of the stakes. With credit accounts the process would be still simpler. When sending these out at the end of the“ week one stamp world he affixed by the bookmaker to cover the total amount of the bets.. Rolls of stamps would not he nracticable on the racecourse, but the tickets used- could he printed in various colours, so that their stamp value would he seen at a glance.