TOTALISATOR TAX

Manawatu Standard, Volume L, Issue 206, 28 July 1930, Page 6

TOTALISATOR TAX

PROPOSED ADDITION.

RACING PRESIDENT’S PROTEST.

Per Press Association. WELLINGTON, July 27. In view of the proposal contained in the Budget to increase the totalisator tax Mr 0. S. Watikns, president of the New Zealand Racing Conference, has sent the following telegram to tho Prime Minister: “On behalf of the Racing, Jockey and Hunt Clubs of New Zealand I desire to lodge an emphatic protest against the proposal in the Budget to increase the totalisator tax by 2 I per cent, as any such increase must result in diminished revenue. I beg to assure you that tho considered opinion of the administrators of racing is that the only safe channel through which additional revenue can be obtained from tho totalisator without crippling racing is to permit totalisator investments to bo telegraphed to clubs on race days.” In supporting his protest, the president made the following statement: “I consider it absolutely necessary to draw attention to the burden of taxation which has been levied upon racing since 1910. Prior to the year 1910 the totalisator tax was 10 per cent, of which the Government received II per cent, and the cluljs 81 per cent. Since 1910 various special taxation under which racing and trotting labours lias been enacted.” Mr Watkins then reviewed various measures passed and recalled Mr Massey’s promise in 1924 to reduce taxation on racing—a promise unfulfilled through his illness and death. LARGE AMOUNT PAID.

“The taxation paid or payable to the Government by racing clubs, not including trotting clubs, dui'ing the racing year just drawing to a close amounts to £400,000,” said Mr Watkins. “Frequently cases occur each year where clubs, although paying a large amount to the Government m taxation, make a substantial loss over their meetings. Consequently a number of racing clubs have reached a stage where it has to be seriously considered whether they can carry on under the special forms of taxation which have been imposed since 1910. “As regards the proposal in the Budget to increase the amusement tax, racing clubs will have to accept the additional burden, which will be costly to them. The amusement tax already paid by clubs on their members’ subscriptions is considerable, apart from the tax paid on gate moneys. “It has been stated that the proposed increased of 21 per cent in the totalisator tax will not affect clubs, but I am satisfied a rake-off of 3s 4ld on every pound invested on the totalisator can only result in diminishing the amount of money available for investment. Consequently the revenue to the clubs and tho Government must decrease. “It must not be overlooked that Government taxes of over £500,000 per annum are already taken from racing and trotting to go into the Consolidated Fund and do not come back into circulation for reinvestment on the totalisator. “For many years the racing and trotting authorities have been urging the various Governments to repeal the Act which prohibits investments on the totalisator to be remitted to clubs on race days. Racing and trotting administrators conscientiously believe such a measure to be the only channel through which additional revenuo can be obtained from the totalisator without crippling racing and trotting. It is generally understood that tho Commissioner of Taxes collects income tax on the operations of the illegal bookmaker. An analogy would be the keeping of an unlicensed hotel for the sale of liquor and the proprietor being mulcted for income tax, the bookmaker and the unlicensed hotelkeeper both conducting illegal businesses. Surely such a state of things is a travesty on the law and should not be permitted by our legislators. I earnestly appeal to our legislators and to all concerned with the welfare of racing to seriously consider the disastrous effect that further taxation on. the totalisator would inflict upon a national pastime.”