TAXATION INCREASE.

New Zealand Herald, Volume LXVII, Issue 20640, 12 August 1930, Page 7

TAXATION INCREASE.

EFFECT ON RACING CLUBS. THE BOOKMAKERS' HARVEST. " A serious consequence of the proposed increased taxation on racing will be a to increase betting with bookmakers, who even under existing circumstances are reaping a great harvest and contribute little toward the revenue of the State," said Sir Edwin Mitchelson, president of the Auckland Racing Club, at the annual meeting yesterday. The totalisator investments of the club during the past year were slightly in excess of the previous season, but' it was difficult to predict what might be the position at the end of the present year's operations, as it was at present impossible to gauge the result of the Government s proposals. The increase in the totalisator tax from 10 per cent, to per cent, would primarily fall on the investors, but would probably decrease the amount of turnover on the machine. If such were the case the imposition of tho extra tax must react on racing clubs, causing diminished revenue which in turn would most certainly bring about lower prize money. Reduced attendances might also be looked for, as well as smaller fields of horses, and the consequent drop in revenue would probably involve many racing clubs, particularly tho smaller ones, in great loss, at the same time reacting against the State. If the Dominion was to pay its way increased taxation was necessary, hut apart altogether from the question of class taxagreat care should be exercised to save tho goose that laid the golden eggs. This was now much in evidence by the largo number of horses *which were being annually taken to Australia to race. Owners stated that horses could be taken to the Commonwealth more comfortably and at less cost than from Wellington to Auckland or vice, versa by rail. This should not be so. and the Railway Department appeared to be most remiss m this respect. , , The increased amusement tax wonia also fall heavily on racing clubs, and would affect the Auckland Racing Club to the extent of £7OO to .CfiOO a \e< . Dnrine the season the Government r ceived from' the club taxation to €62 954. the club receiving the ustuX rebate of £250. Local rates and cost £2285, making a f or t > . in taxation tar-ly Govern™" Iproposals 1 proposals augmented if the i must proV e a S? %£* "» *' of tho proposed Aprnxln'-n' «• fiSS" «nj ""c 1 " °f™ i. 1 '" sli"litlv for racing elubs bv diverting tho bottin* from the illegal bookmaker to tho legitimate channels of the totalisator.