Labour stays firm on punt tax

Labour will not match National's promised enormous tax break to the racing industry.

National leader Don Brash this week said his party would align racing with casinos, a move that would reduce betting tax and give the racing industry an extra $25 million a year.

But at an industry meeting in Hamilton last night, Racing Minister Damien O'Connor said: "I am happy to stand on Labour's record in racing. We are not going to get into a bidding war on tax breaks."

Mr O'Connor said that in the 2005-06 racing season, a record $81 million in stakes would be offered nationwide.

But he conceded there may have to be an adjustment to the significantly smaller tax take per dollar paid by casinos.

New Zealand First leader Winston Peters said racing had been treated poorly by consecutive governments.

The industry needed improved depreciation on bloodstock, taxation advantage for on-course bidding and reforms that put all gaming on the same footing.

Act MP Ken Shirley said the present levels of taxation on gaming were indefensible and the party would abolish all of them. "Act doesn't support sin taxes."