RACING TAXATION

Nelson Evening Mail, Volume LXI, 8 August 1928, Page 6

RACING TAXATION

■ - CONSIDERED IN BUDGET UNWARRANTED STATEMENTS • (By Telegraph) (From “Tho Mail’s” Parliamentary Reporter). WELLINGTON, 7th August. Racing taxation was dealt with as follows by the Minister of Finance (the lion. W. Downie Stewart) in the course of his Financial Statement presented to the House of Representatives last night : “I have carefully examined the frequent statements by racing deputations that they are being crushed by heavy taxation. lam unable to finds any warrant for these statements. In fact, the racing clubs do not ask that the taxation imposed on the public should be reduced, but merely that they should receive a, larger share of it. While it is clear that some clubs are in financial difficulties, it is equally clear that these difficulties do not arise from Government taxation. _ ) “The main source of the racing clubs’ revenue is the totalisator-tax—a levy of 10 per cent, of the money put through the machine. Hie clubs take 7g per cent, and the Government- only 21- per cent. This tax has not been altered since 1910, so that the frequent statement that' the clubs suffer from increased war taxation has no foundation. The 2/ per cent, which, is handed over to the Government is merely collected by the racing clubs as agents for the Crown, and in n’O way renders them the poorer. The dividend-tax was increased in 1921 from 2|- per cent, to 5 per cent. This is also levied on tho investor’s money, and the dividend-winner pays it, not the club. It is, like the totalisator-tax, collected by the racing clubs as agent for the Crown, and does not in any way “tax the revenues of the club. These remarks also apply to the stakes duty and amusement-tax.

REMISSIONS AND CONCESSIONS

“It must not be forgotten, too, that although for a short period in 1921 the unpaid fractions of dividends were taken by the they were shortly afterwards again conceded to the clubs. These amount approximately to between £35.000 and £40,000 a year. “In 1925 per cent, of the totalisator duty on the first £20,000 (equivalent to £250) was rebated to each club for improvements effected to grounds. This meant a further concession to the clubs of £26,000 per annum of the Government's small share of the totalisatortax. The clubs also benefited considerably from the general abolition of in-come-tax on income derived from the use of lands. The stakes duty was reduced from 10 per cent, to 5 per cent”, in 1924, a concession valued; at £30,000; and the tax of per cent, on payments for admission to the course, valued at £6500, was repealed last year. “To sum up, the remissions and concessions to racing in the last few years are worth over £IOO,OOO a year. “My reason for recapitulating these facts is to show that financial difficulties of the racing clubs are due to causes which jiayo nothing to do with taxation.

“I would suggest for consideration that the most practicable way in which assistance can he given to the smaller clubs is to 'fix the totalisator-tax on a graduated scale, so as to practically exempt the small clubs from taxation. So far the metropolitan clubs have not received tins proposal with favour, “If, however, there is any assistance within reason that can he' granted to the country club's, I feel sure tliat when the opportunity occurs Parliament wifi support it, as it is highly undesirable that all the racing facilities should be concentrated in the cities.”