Breeders back proposal to double betting tax

PROPOSALS TO double betting tax to 2 per cent of bookmakers’ turnover have been supported by the horse-racing industry.

The Irish Thoroughbred Breeders’ Association, representative body of the Irish thoroughbred breeding industry, yesterday said the industry was worth €1.1 billion a year. It said the tax raised could reach €70 million a year, helping the exchequer and safeguarding well-paid jobs in the industry.

The association said Ireland was the only country in the world where the racing industry does not receive an automatic direct payment from the gambling industry. It also called for the introduction of licensing for all internet, telephone and betting shops, claiming Ireland “has the lowest levels of betting taxes in the world”.

Citing research it commissioned from economist Colm McCarthy, association president Dr Dean Harron described the proposed increase in betting tax as a “win-win” situation for Government and the industry.

“Ireland’s horse-racing industry is among the world leaders and employs thousands of people throughout rural and urban centres in high-quality, well-paid jobs in breeding, training, regulation and thousands more in the supporting industries of vets services, farrier services, feed suppliers and transport operators,” he said.

Dr Harron said the industry also attracted in excess of 80,000 tourist visits each year and was the envy of many countries worldwide.

The report found the eminent position of the industry could not be maintained without high levels of prize money. It pointed out that most jurisdictions provide this by operating state gambling monopolies and do not have a free market for betting, as Ireland and Britain do. The report said in proportion to other jurisdictions, Irish off-course bookmakers pay low turnover tax.