Ireland's horse racing body wants an increase in betting taxes - with punters footing the bill

The naional body that oversees horse racing in Ireland has suggested that betting taxes should be increased – with punters footing the bill.

Horse Racing Ireland (HRI) has said in a submission to a Department of Finance review of the betting taxthat the rate of duty should be increased from 1% of bookmakers’ annual sales to 2.5%, with the extra charge being passed on to customers.

This charge had been levied until 2006, when the tax was cut. The major bookmakers have called on the government to maintain the existing 1% levy, with no additional tax placed on punters’ bets.

However HRI also calledfor the 15% commission on gross profits in betting exchanges to be increased to 37.5%, with the increase being collected from punters.

The group’s boss Brian Kavanagh said in the submission that a 2.5% betting duty would still mean Ireland has “one of the lowest rates of betting tax in the world”, but it would be of greater benefit to the public purse.

He said that betting turnover in 2016 was just over €5 billion, on which €51 million was collected in duty. In 2001, betting turnover was €1.1 billion, while €68 million was collected through the tax.

“So, while the betting market has increased almost five times between 2001 and 2016, the yield to the exchequer from duty has actually fallen,” Kavanagh said.

He added raising the rate of duty would “allow the funding of horse racing to be increased to the level necessary to successfully develop the industry”.

Kavanagh also suggested it would eliminate the need for the exchequer to top up the horse and greyhound racing fund, of which HRI is a beneficiary.

‘Level playing pitch’

In 2006, the government reduced the rate of betting duty from 2% to 1%, transferring liability from the punter to the bookmaker.

HRI claimed that the measure was “not successful”. It said a 2.5% betting duty tax would generate around €125 million for the public purse in its first full year of operation.

It asked for the extra 1.5% charge to be paid entirely by the punter, claiming that any increase on the bookies’ side would harm the betting sector.

Recognising the need for a level playing pitch and to protect employment in the retail betting sector, the 1% charge on bookmakers should not be increased,” it said.

Coupled with a hike in the rate of betting exchange commission from 15% to 37.5%, this would reduce the need for the state to pay into the horse and greyhound racing fund, the HRI argued.

“It would transfer the funding of horse racing in Ireland from all taxpayers to those that choose to have a bet,” Kavanagh said.

Read more Dublin news here.

thejournal.ie
horseracing Ireland
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
2 views in october
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Society
National Slow Down day, an operation aimed at getting motorists to watch their speed on roads, got under way this morning. The 24-hour operation came into force at 7am and will continue until 7am tomorrow. It consists of high visibility speed enforcement in over 1,000 enforcement zones, as well as the delivery of a road safety message through the use of national, local and social media. The objective of the operation is to reduce the number of speed-relate...
Society
Housing and homeless agency Novas, which works with vulnerable individuals and families in Limerick and the mid-west, has said it helped over 4,500 people last year. In its annual report released today, it warns of the worrying trend that those becoming homeless are getting younger. Novas works with homeless people, and those at risk of becoming homeless, in Limerick, Kerry and Tipperary. The escalation of the homelessness crisis, coupled with more people...
Society
Irish baby name trends have taken a such a drastic turn in the past century some are becoming extinct, research has revealed. While some new entries gained traction in recent years, there are still timeless favourites that soar high on the popularity scale. The Ancestry.ie survey identified Adam and Harry as the favourite names among boys, seeing a 1,396% and 979% percentage increase since 1917 respectively. They are followed by Luke, Aidan and Mark to for...
Incidents
One person was hospitalised after a crash between a horse and carriage and a car overnight. Two fire engines and an ambulance were called after the crash at 2:30am on the junction of Eccles Street and Dorset Street. The man at the helm of the cart was brought to hospital although his injuries were not believed to be serious. The horse bolted for about 100 metres after being startled by the crash but was uninjured. The carriage however received heavy damage...
Society
A grieving Dublin woman said she is still in shock that her elderly mother died from spilling a cup of tea. Daphne Anderson (91) - originally from Glasnevin - died from sepsis, which she contracted in hospital while being treated for scalding injuries. Daphne's daughter Audrey told The Herald that her mother had been fit and active prior to the injury. She said: "My mother was fit and in good health. I can't believe that spilling a cup of tea could have ki...
Society
Passengers were left frustrated at the weekend as Aer Lingus was forced to cancel two flights at late notice. People hoping to fly to JFK Airport in New York on Saturday afternoon were angered when the flight was cancelled. Aer Lingus flight EI109 was due to leave Dublin for JFK at 4:10pm but was cancelled just hours before. Many holiday-makers were sat in the airport at the time waiting for information when the news broke the flight would not be in operat...
Incidents
Vandals who set fire to two taxis over the past four days in Crumlin have been condemned as "scumbags". One cab was burnt out on Friday night, followed by another this morning. The Dublin Taxi Drivers Facebook page shared images of the destroyed vehicles this afternoon and urged people in the area to be aware of any suspicious behaviour. In the post, the group wrote: "Two taxis burnt down in Crumlin, Friday night and one this morning on Sundrive road! "Be...
Society
A society in a Dublin college has been suspended from all social activity for a semester after videos emerged of members getting naked and partaking in "frat style games". DCU's Accounting and Finance Society hosted an election for their first year reps in which students were allegedly performing "nude acts" as well as being told to complete "challenges". In a statement tonight, the society said they will "ensure this does not happen again" and apologised...
Society
Despite the potential operation, Terry claimed that she is not expected to be given accommodation for at least another six months. A former soldier who is homeless and has been living in her car in Dublin has revealed she will be bed-bound for five weeks after an upcoming operation Terry O’Reilly said last week that she has been living in her car in Shankill for more than a year. The 34-year-old has now revealed that she is facing an operation to address n...