SPORT AND TAXATION

Manawatu Standard, Volume XLV, Issue 189, 15 July 1925, Page 8

SPORT AND TAXATION

A southern contemporary, noted for its clarity of thought and logical argument the Otago Daily Times—referred at some length on Friday, to what it termed Sir George Clifford’s “almost passionate protest,”, at the Racing Conference, “against the present condition of racing taxation. The burdens laid by .Parliament upon the sport,” Sir George represents, “are, in his opinion (the Times says) oppressive to the point of persecution.” The State is, it is true, taking a bigger cut from the totalisator receipts than it used to do, and it is taxing the racing clubs in other ways, but most people are under the impression that it is the public rather than the clubs that foot the bill. The circumstances which made the taxation necessary are exceptional. There is scarcely an industry or an interest. in the country that is not contributing in increased taxation to the State revenue to-day. Why racing clubs should complain because they have not been exempted we fail to see, because, as our Dunedin contemporary very truly remarks, “the people who attend race meetings, not the racing clubs, pay the bulk of the special taxation,” and it does not appear either from the totalisator receipts, or the attendances at the various race meetings, that the clubs are suffering thereby. To talk of “persecution” under such circumstances savours of absurdity. Sir George Clifford apparently considers that the racing clubs are deserving of special consideration, or, as he puts it, that they are “worthy of all encouragement,” because .(as he claims) they are “beneficial to the physical and moral health of the community.” Their prosperity is, therefore, he further claims, “essential to the financial and other advantages accruing to the Dominion from their existence.”. Some people have been unkind enough to suggest that, so far from being a “financial advantage” to the community, the racing clubs are the opposite; but it is not necessary to pursue that line of argument to demonstrate the fallacy of Sir George Clifford’s contention that the clubs are being “persecuted.” After all, it is from the totalisator receipts that the bulk of the revenue comes, that is contributed bj r the racing clubs to the State, and the proportion of taxation revenue contributed from this source is only 3.74 of the taxation collections from all sources, whereas Customs and Excise, duties contribute 48.33 per cent., land tax 8.62 per cent., income tax 22.86 per cent., death duties 9.18 per cent., and other taxes 7.27 per cent. Of the actual collections for the year ended March 31st, 1924, amounting to £16,540,438, the receipts from the totalisator tax were £618,425; but, as already stated, the public, and not the clubs, paid the tax. So far as we are able to judge, the bulk of the special taxation levied by the Government has been passed on to the general public. It is unfortunate that the necessities of the position compel the Government to maintain a substantial increase, in these post-war years, on its levies in the pre-war period, but it has been able to lift the burden of direct taxation somewhat during the last three years, and, in the expectation of further reductions, it may be that Sir George Clifford thinks that, by making a strong protest against the taxation of racing clubs, he may secure a substantial reduction in the levies at present made upon them. But, while the Government. is giving consideration to the appeal for a reduction in taxation on luxuries and superfluities, it should further ease the burden of the land and income taxpayer, and lighten the load of those utilitarian enterprises which are responsible for the employment of the people, and the production of the wealth of the country. We do not suggest that racing clubs should not receive some relief from the burden of taxation, but

they are no worse off than those engaged in business enterprises. There should, in our opinion, be an all-round reduction in taxation and if necessary State expenditure should be curtailed to permit of this being done.