TOTALISATOR TAX

Wairarapa Age, 28 July 1930, Page 5

TOTALISATOR TAX

EMPHATIC PROTEST INCREASE. STATEMENT BY PRESIDENT OF RACING CONFERENCE. EXCEPTION TO BUDGET PROPOSALS. WELLINGTON, July 27. In view of the proposal contained in the Budget to increase the totalisator tax, Mr. O. S. Watkins, president of the Racing Conference has sent the following telegram to the Prime Minister: “On behalf of the racing, jockey and hunt clubs of New Zealand, I desire to lodge an emphatic protest against a proposal in the Budget to increase the totalisator tax by two and a half per centum, as any such increase must result in diminished revenue.

• -“I keg to assure you,’’ Mr. Watkins continued, “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 protect 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 eent., of which the Government received 1} per eent. and clubs 8i per cent. .Since 1910 various special ■ taxation under which racing and trotting labours, has been enacted.’’ Mr. Watkins than reviews the various measures passed and recalls Mr. Massey’s promise in 1924 to reduce taxation on racing, a promise unfulfilled through his illness and death. “The taxation paid or payable to the Government by racing clubs, not ineluding trotting clubs, during the racing year just drawing to a elose, amounts to £4OO 000 ’’ says Mr. Watkins. “Frequently’ cases occur each year where elubs, although paying a. large amount to the Government in taxation, make, a substantialloss over their meeting. Consequently, a number of racing clubs have reached the stage when 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 bo costly to them The amusement fax already paid by elubs on their members’ criptions is considerable, apart from tin- fix naid ™ f at .° mon ey«- It ha. been stated that the proposed increase of 24 per cent in the totalisator tax will not aff ® ct Jtabs, but I am satisfied the ™ ke nf£ o{ 3s. 4Jd. on every pound in-, vested on the totalisator can only result in a diminishing amount of money available for investment. Consequently, the revenue to clubs and the Government must decrease. It must not be overlooked that Government taxes £5O0 ’ 000 P er annum, already taken from racing and trotting elubs 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 various Governments to repeal the Act which prohibits investments on the totalisator to be remitted to elubs on race days. Racing and trotting administrators conseien tiously believe such a measure to he ° n! y safe channel through which ‘ b °! la rev « nu e can be obtained from the totalisator without erippling racing and trotting. It is generally understood that the Commissioner of Taxes collects Income tax on the operation 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 busiensses. 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 in the welfare of racing to consider tho disastrous effect that further taxation on the totalisator would inflict on a national pastime.”—(P.A.)