TOTALISATOR LEVY.

New Zealand Herald, Volume LXVII, Issue 20627, 28 July 1930, Page 10

TOTALISATOR LEVY.

PROTEST AT INCREASE.

BURDEN ALREADY HEAVY

HARMFUL EFFECT ALLEGED

[BY TELEGRAPH. — PRESS ASSOCIATION.] WELLINGTON. Sunday.

In view of the proposal contained in the Budget to increase the totalizator tax, Mr 0. S. Watkins, president of the Racing Conference, has sent the following telegram to the Prime Minister. Hon. G. W. Forbes:—

" On behalf of the racing, jockey and hunt clubs of New Zealand I desire to lodge an emphatic protest against the proposal to increase tho totalisator tax by per cent., as any such increase must result in diminished revenue. 1 beg to assure you that the considered opinion of the administrators of racing is that the only safe channel through which additional revenue can be obtained from the totalisator without crippling racing is to permit totalisator investments to be telegraphed to clubs on race days." In supporting his protest Mr. Watkins made tho 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 1910 tho totalisator tax was 10 per cent., of which the Government roH per cent, and tho clubs 8? per cent. Since 1910 various special taxation has been enacted."

Mr. Massey's Promise

Mr. Watkins (lien reviewed (lie measures passed and recalled Mr. Massey's promise in 1924 to reduco taxation on racing. That promise, lie said, had not. been fulfilled, owing to Mr. Massey's illness and death

" Taxation paid or payable to the Government by racing clubs, not including trotting clubs, during the racing year just drawing to a close," he said, "amounts to £400,000. Frequently cases occur each year where clubs, although paying a larc;o amount to the Government in taxation. make a substantial loss over their meetings. Consequently a number of racing clubs have reached the stage when it has to be seriously considered whether tliev can carry 011.

" As regards tho proposal in the Budgot to increase the amusement tax, tho racing clubs will have to accept the additional burden, which will bo costly to them. The amusement tax already paid by clubs 011 their members' subscriptions is considerable, apart from tho tax paid on gate moneys. It. has been stated that tho proposed increase of 21, per cent, in tho totalisator tax will not affect the clubs, but I am satisfied that a tax of 3s totalisator can only result in diminishing the amount of money available for investment. Consequently, the revenue to the clubs and the Government must decrease.

Taxes Already Levied

" It must not be overlooked that Government taxes of over £500,000 a year already taken from racing and trotting go into the Consolidated Fund and do not come back into circulation for reinvestment on the totalisator. For many years racing and trotting authorities have been urging tho various Governments to repeal (he Act which prohibits investments 011 tho totalisator to be remitted to clubs on race days. Racing and trotting administrators conscientiously believe such a measure to bo the only safe channel through which additional revenue can ho obtained from (he totalisator without crippling racing and trotting. " It is generally understood that the Commissioner of Taxes collects income tax on tho operations of the illegal bookmaker. An analogy would bo the keeping of an unlicensed hotel for the sale of liquor and tho proprietor being mulcted for incomo tax, the bookmaker and unlicensed hotelkeeper both conducting illegal businesses. Surely such a state of things is a travesty on the law and should noi be permitted. I earnestly appeal to all concerned in tho welfare of racing to consider (!io disastrous effect that further taxation on tho totalisator would inflict upon a national pastime."

" LIMIT ALREADY PASSED."

LOWER REVENUE PREDICTED

[HV TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Saturday.

'1 he following message has been sent to the Prime Minister, the Hon. (i. W. Forbes. ?>y i.'te chairman of the New Zealand Sports Protection League:—

"flic >purts Protection League trusts that you will reconsider the Government proposal to tux further an already overtaxed branch of sport. Experience shows that the limit has already been passed in which totalisator taxation can be imposed without depreciating turnover, and a further fall in investments will seriously affect tho finances of clubs and tend to reduce tho State revenue rather than increase. it.

"On the other imrid, the business of the illegal I>e< lor will be made more attractive arid profitable. More certain revenue could be obtained by legislating to divert illegal betting into legal channels, in which case both the Stain and the clubs would benefits"