Brash signals tax realignment for racing industry
Don Brash MP - National Party Leader
15 June 2005
Don Brash signals tax realignment for racing industry
National Party Leader Don Brash has signalled a significant tax realignment for New Zealand's racing industry in an announcement at Trentham today.
National plans to change the unfair taxation regime which currently applies to racing, and align it with other competitive industries, like casinos.
"National recognises that racing, breeding and horse ownership are facets of a unique agribusiness that contributes to our overall economy through employment, exports and related industries.
"New Zealand racing contributes $1.5 billion per annum to the economy, supports 18,300 full-time jobs and exports $130 million worth of horses.
"But thoroughbred racing and standardbred racing have been in relative decline for some years. In part at least this is because the gaming duty takes about six times as much out of the average dollar bet on racing as it does out of the average dollar bet in a casino," says Dr Brash.
National's policy for the sector includes a plan to bring gaming duties paid by the racing industry into line with those paid by casinos, at an estimated cost of around $25 million annually.
"There is a real tax inequity when racing is compared to other gaming competitors.
"This is an iconic New Zealand industry, steeped in history. We want to make sure it's not handicapped by an unfair tax system," Dr Brash says.