Vol. 498 No. 4
260 Mr. Rabbitte asked the Minister for Finance the gross cost in terms of tax foregone on a full year basis of the budget decisions to cut the rate of off- course betting tax from 10 per cent to 5 per cent and to eliminate the on-course levy of 5 per cent; and if he will make a statement on the matter. [27355/98]
In my Budget Statement I said that I propose to cut the 10 per cent off-course betting tax to 5 per cent with effect from 1 July 1999 and that the Minister for Agriculture and Food will arrange with the Irish Horseracing Authority and Bord na gCon to eliminate the present on-course levy of 5 per cent to zero with effect from the same date.
Both proposals are absolutely conditional on satisfactory alternative arrangements being found to secure independent sources of funding for the Irish Horseracing Authority and Bord na gCon from the various elements of both industries, namely, bookmakers, racecourse owners, the Turf Club and others.
It is proposed, in consultation with the Minister for Agriculture and Food, to appoint an independent facilitator to bring the matter of the funding of these two bodies, including amending legislation, if necessary, to a satisfactory conclusion by 1 July 1999.
This reduction in betting tax will cost the Exchequer approximately £12 million in 1999 and £24 million in a full year. In 1997, the betting levy income for the Irish Horseracing Authority amounted to £4.4 million; in the same year, the betting levy income for Bord na gCon amounted to £1 million.
