“TOTE” TAX INCREASE

Sun (Auckland), Volume IV, Issue 1035, 28 July 1930, Page 11

“TOTE” TAX INCREASE

PROTEST FROM RACING PRESIDENT I “MUST DIMINISH REVENUE” Press Association AVELLIXGTOX, Sunday. In view of the proposal contained in j the Budget to increase the totalisator tax, Mr. O. S. Watkins, president of the Racing Conference, lias sent the following telegram to the Prime Minister, the 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 the totalisator tax by 2i 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 the only safe channel ! through which additional revenue can j 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 the following sttaement: “I consider it absolutely necessary to drawattention to the burden of taxation which has been levied upon racing since 3910. Prior to 1910 the totalisator tax was 10 per cent., of which the j Government received 15 per cent, and 1 the clubs 8£ per cent. Since 1910 j various special taxation has been * enacted.” Mr. Watkins then reviewed the j measures passed and recalled Mr. j Massey's promise in 1924 to reduce j taxation on racing. That promise, he said, had not been fulfilled, owing to Mr. Massey's illness and death. “£400,000 A YEAR” “Taxation paid or payable to the Government by racing clubs, not including trotting clubs. during the racing year just drawing to a close,” ho said, “amounts to £400,000. Frequently cases occur each year where clubs, although paying a large amount to tho Government in taxation, make a substantial loss over their meetings. Consequently a number of racing clubs have reached a stage when it has to be seriously considered whether they can carry on. “As regards the proposal in the Budget to increase the amusement-tax, the | racing clubs will have to accept the ad- , ditional burden, which will be costly to them. The amusement-tax already ’ paid by clubs on their members’ sub- i scriptions is considerable, apart from | the tax paid on gate moneys. It has been stated that the proposed increase of 25 per cent, in the totalisator-tax ■ will not affect the clubs, but I am sat- : isfied that a tax of 3s 4£d on every i pound invested on the totalisator can only result in diminishing the amount j of money available ofr investment ! Consequently, the revenue to the clubs j and the Government must decrease. ! REMITTING INVESTMENTS “It must not be overlooked that Gov- j ernment taxes of over £ 500,000 a year j already taken from racing and trotting I

J go into the Consolidated Fund and do I not come back into circulation for r - 1 investment on the totalisator. For many years racing and trotting autlic**- : ities have been urging the vari--5 oua Governments to repeal the A : ' | which prohibits investments on the to- ’ J talisator to be remitted to clubs on j race days. Pacing and trotting administrators conscientiously believe t such a measure to be the only safe ; channel through which additional re- | venue can be obtained from the totalisator without crippling racing and trotting. *Tt is generally understood that the Commissioner of Taxes collects in-come-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 unlicensed hotelkeeper both conducting illegal businesses. Surely such a state of things is a travesty on j the law' and should not be permitted. . I earnestly appeal tQ all concerned in ! the welfare of racing to consider the j disastrous effect that further taxation : on the totalisator would inflict upon a national pastime.”