LATE CORRESPONDENCE

Hawera Star, Volume XLVII, 23 August 1928, Page 9

LATE CORRESPONDENCE

RACING TAXATION. (To the Editor.) Sir, —Your correspondent “Critic” states that I have dealt with side issues which do not justify or affect the position of racing clubs who claim that they are overburdened with taxation. Suck a statement merely proves that “Critic” is not sufficiently well informed on racing affairs to realise that the subject matter of my letter is in the nature of justification of the reduction of taxation, and that in any article on racing taxation the subjects (referred to by your correspondent as “side issues”) must find a place. “Critic” proceeds to readily admit the high costs of conducting race meetings and that stakes must be maintained at a fair standard, but emphasises that in his opinion this is not the point. Then, sir, I ask vour correspondent “what is the point?” Briefly, this above-mention-ed consideration forms the crux of the whole position. I have previously outlined the limited sources of revenue available to clubs from race meetings, and it therefore follows that, unless the totalisator tax is . reduced, it will lie impossible for many clubs to continue' their fixtures on the same scale —with the inevitable reduction of allround taxation to the Government, who will surely then be “killing the goose, etc.” Your corresponden i only reiterates my own statement when he says that the unblic provide the tax —that is quite" obvious, ns the Egmont Racing Club balance-sheet clearly shows. Dogs “Clitic” realise that the cost to the club of providing the totalisator facilities for the four days’ racing of the Egmont Racing Club —allowing only for staff wages, totalisator equipment and interest on the capital cost of the building only ; is £1290? and this before a single ticket is sold on the machine. It therefore follows that unless the club was allowed a percentage of the investments to cover working expenses it would he quite impossible to run the meetings in their present form. ' Your correspondent again ignores ray previous statement that the racing clubs desire a reduction in taxes imposed upon the public, asi well as upon the clubs, when he suggests the contrary, and that the clubs desire a larger share of the spoils. It should here be of interest to know exactly what the racing clubs —both individually and through their conference — desire, and upon which very strong representations are still being made to the Government. Reduction to the racing public: Dividend tax reduced from 5 per cent to 24 per cent as formerly. To horse owners: Stakes tax reduced from. 5 per cent to 1 per cent as formerly. To racing clubs : Reduction of 24-' per cent tax on totalisator investments to 14 per cent as formerly. These taxes' have been progressively increased between the years 1910 and 1925, and while admitting tlieir expediency during the war years, and when the general financial condition of the Dominion perhaps justified them, the time lias arrived when a general . reduction is absolutely necessary.

For the racing season ended July 31, 1928, the total taxes received by the Government amounted to the enormous sum of £410,670 .Is 7d, made up as follows: Totalizator tax ... £133,333 14 4 Dividend tax ... 239,966 5 1 Stakes tax 20,199 1 0 Receipts tax 1,171 6 O Amusement tax 13.163 17 8 Land tax 2,83<5 17 6 —I am, etc., JNO. GRAY. Hawera., August 23.