WEDNESDAY, FEBRUARY 27, 1985
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HIGHER TAX NEEDED ON BETTING
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BETTING DUTY WOULD NEED TO BE INCREASED FOR THE THIRD CONSECUTIVE YEAR, THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, ANNOUNCED IN HIS BUDGET SPEECH.
SIR JOHN PROPOSED THE FOLLOWING THAT THE DUTY ON STANDARD BETS BE RAISED FROM 9 PER CENT TO 9.5 PER CENT, AND THAT THE DUTY ON EXOTIC BETS BE INCREASED FROM 15 PER CENT TO 16 PER CENT.
THE INCREASES, TO TAKE EFFECT FROM APRIL 1, 1985, WOULD PRODUCE AN ADDITIONAL $120 MILLION IN 1985-86, HE SAID.
SIR JOHN SAID THAT ON THE TWO PREVIOUS OCCASIONS WHEN BETTING DUTY WENT UP, THE JOCKEY CLUB, WHICH HAD ALWAYS BEEN UNDERSTANDING, BORE THE WHOLE OF THE INCREASES ON STANDARD BETS WHILE THE INCREASES ON EXOTIC BETS WERE SHARED BETWEEN IT AND THE PUNTERS. THIS MEANT THAT THE LARGER SHARE OF THE INCREASE WAS BORNE BY THE JOCKEY CLUB, HE SAID, AND IT WAS NOT REASONABLE TO EXPECT IT AGAIN TO BEAR THE MAIN BURDEN OF THE FURTHER INCREASES PROPOSED THIS YEAR.
+ACCORDINGLY, IT IS MY INTENTION THAT THE ONE-HALF PER CENT INCREASE ON STANDARD BETS SHOULD BE SHARED EQUALLY BETWEEN THE CLUB AND THE PUNTER AND THE ONE PER CENT INCREASE ON EXOTIC BETS 0.4 PER CENT BY THE CLUB AND 0.6 PER CENT BY THE PUNTER.
+1 AM, OF COURSE, AWARE OF THE NEED TO ENSURE THAT THE BETTING PUBLIC IS NOT ENCOURAGED TO ABANDON THE JOCKEY CLUB TOTE IN FAVOUR OF THE ILLEGAL BOOKMAKERS, BUT THIS IS NOT A LIKELY CONSEQUENCE OF THESE PROPOSALS+.
IN A FOOTNOTE IT WAS EXPLAINED THAT SO FAR AS STANDARD BETS WERE CONCERNED, THE REDUCTION IN THE PRIZE POOL WOULD BE ONLY 25 CENTS FOR EVERY $100 WAGERED AND FOR EXOTICS (WHERE THE DIVIDEND YIELDS WERE GENERALLY MUCH HIGHER) THE REDUCTION IN THE PRIZE POOL WOULD BE ONLY 60 CENTS FOR EACH $100 WAGERED.
HAVING REGARD TO THE PRESENT RATIO OF STANDARD TO EXOTIC BETS INVESTED ON THE TOTALISATOR, IT IS ANTICIPATED THAT THIS WILL BE CONTRIBUTED IN APPROXIMATELY EQUAL PROPORTIONS BY THE PUNTERS AND THE JOCKEY CLUB.
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