DEFEATING ITSELF

Taranaki Daily News, 17 November 1926, Page 5

DEFEATING ITSELF

DECREASED RETURNS FROM TAXES CARNIVAL WEEK COMPARISON. Recently certain Australians returning to their native land from New Zealand commented rather severely on the very heavy tax imposed upon the racing public of New Zealand in comparison with the comparative immunity enjoyed by these people in Australia who patronise the bookmakers. It is perhaps not generally known, but since the amendment to the Act in 1920, the amount deductable from moneys invested on tile totalisator has been increased from 124 to 15 per cent., by the increase from 2J to 5 per cent, in the dividend tax, which became operative at the beginning of 1921. That tax was increased for the one purpose, to increase the revenue payable to the Government, but it seems that the tax is acting in exactly the reversq, way (states the Dominion). Probably the biggest racing week in the year is that known as “Carnival Week” in Christchurch, when there is racing or trotting for every day of the week, all centring round the race for the. New Zealand Cup. Those meetings should serve as well as any other to illustrate the effect of the last somewhat drastic change of tax on the pockets of racing folk. As showing how the investments have decreased —a steady decrease since 1920 —one need only quote the investment returns for the year 1920 (when the tax was only 5 per cent, for the Government and 7j per cent, for the racing and trotting clubs). In that year tlie> investments for Carnival Week, at the racing and trotting meetings, amounted to £599,217, whereas for the same period last year the investments only amounted to £385,682, a decrease of £213,535. Out of the investments for 1920 the Government took the following moneys:— 21 per cent, on totalisator investments taxes and 2J per cent, on dividends; a total of £28,462. For the same period (Carnival Week) last year, the-returns were as follow: 21 per cent, on totalisator investments and 5 per cent, on dividends, £27,962. Showing an actual decrease of £5OO. But if the Government has suffered, the racing- clubs of the country have even greater cause for complaint against the action of the Government in 1920, for the two clubs in question received £44,941 as their 1920 percentage, but as the result of the falling away in investments their return for Carnival Week last year only amounted to £28,926, a ’decrease of no less than £16,015. The effect of such heavy decreases is being felt all over New Zealand. Many of the clubs which have Inthprto flourished have been going down steadily since 1920, and are now seeking ways and means of obtaining the wherewithal to keep alive.'