Tax Yield.

Thursday, 12 March 2009

Questions (97, 98, 99)

Deirdre Clune

Question:

96 Deputy Deirdre Clune asked the Minister for Finance the returns to the Exchequer from betting duty in 2006, 2007 and 2008; and if he will make a statement on the matter. [10770/09]

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Deirdre Clune

Question:

97 Deputy Deirdre Clune asked the Minister for Finance the estimated returns to the Exchequer from the 2% betting duty in 2009; and if he will make a statement on the matter. [10771/09]

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98 Deputy Deirdre Clune asked the Minister for Finance his views on whether the increase in betting duty from 1% to 2% will encourage the placing of bets on Internet and tele sites whose operations may be based in other tax jurisdictions; and if he will make a statement on the matter. [10772/09]

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Written answers

Minister for Finance (Deputy Brian Lenihan)

I propose to take Questions Nos. 96 to 98, inclusive, together.

I have been informed by the Revenue Commissioners that the receipts from betting duty are set out below. The decrease in yield for 2007 arose from the reduction in the betting duty from 2% to 1% with effect from 1 July 2006.

2006 — €54.3m

2007 — €36.4m

2008 — €36.6m (estimate)

Arising from the slowdown in economic activity it seems clear that betting turnover will be significantly lower in 2009, which will be reflected in lower than anticipated betting duty yields. Taking into account the duty increase to 2% which only comes into effect from 1 May, the betting duty yield for 2009 is at this stage estimated at approximately €47m.

The increase in the betting duty to 2% from 1 May 2009 involves a tax increase for bookmakers and not those actually placing bets. In that regard there is no particular incentive for punters, on foot of this change, to place bets with out-of-State internet or telephone operations rather than through bookmakers' offices.