|Thursday, June 16, 2005
|Contact: Maurits Bruggink
|Plans to cut taxes on racing in New Zealand
The National Party of New Zealand has announced plans to lower taxes on betting and to introduce tax incentives for thoroughbred and standardbred breeders.
According to the plans, the betting duty would be made equal to the duties paid by casinos. Betting duties are currently 20 per cent of betting profit, compared to a 4 per cent of betting profit on casino wins.
Breeders will be allowed to completely write-off stallions in two years, while this used to be possible by only 25 per cent per year.
The makers of the plans acknowledge that racing is facing increased competition from new gaming products such as casinos, gaming machines and lotto but also from offshore betting and interactive wagering. As the viability of racing is dependent on a Gaming Product, it needs an lower betting tax to be able to compete.
As is the case in many other countries, the racing economy employs many people in both rural and urban environments. In New Zealand, racing supports 18,300 fulltime jobs and exports some $130 million-worth of horses. Tax contributions amount to NZ$1,5 billion.
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