Minister pushes abolition of racing tax

Abolition of on-course betting tax is being proposed, Racing Minister Damien O'Connor told harness racing officials in Auckland yesterday.

O'Connor, speaking to delegates on the first day of the annual meeting of harness racing clubs, said he was already promoting the idea with fellow politicians.

"I am working hard to convince my colleagues to abolish the duty on on-course betting," O'Connor said.

At current levels of betting, the abolition of on-course totalisator duty would inject approximately $2.6 million a year into racing clubs.

His statement took a step further comments made at the annual meeting of thoroughbred racing clubs in Wellington two weeks ago.

In Wellington, he said if there was to be any tax relief for the racing industry it should be as a reduction in on-course betting tax, but gave no further details.

O'Connor yesterday said tax relief directed towards on-course betting would provide encouragement to bolster track attendances by the New Zealand Racing Board (NZRB) which heads the three racing codes of thoroughbreds, harness and greyhounds.

"The on-course initiative will provide an incentive for the board, the racing code bodies and racing clubs to work co-operatively towards the goal of enhancing the on-course experience," O'Connor said.

His suggestion for the abolition of on-course betting tax did not prevent the current analysis by the Government of NZRB's submission for tax adjustment from continuing.

"This initiative is separate from the formal consideration of the board's submission arguing for a tax reduction overall. That process will proceed."

O'Connor said the Inland Revenue Department and Treasury were looking at racing's tax. While any conclusions were months away he was confident there would be some good news.

"I expect all of this work to be completed over the next few months. I'm optimistic it will show that racing has a good case for an adjustment in the way betting is taxed."

O'Connor said making an emphasis in on-course betting and attendance had to be promoted more.

"While we have over one million raceday attendances per year, most people only go once. The door is wide open for greater attendances.

"Facilities at our main racecourses must accommodate the expectations of all New Zealanders and must be equivalent to those of our competitors. I've always personally believed in the importance of on-course participation."

- NZPA