Vol. 559 No. 1
104 Mr. Gilmore asked the Minister for Finance if he intends to review his decision to cut the rate of betting tax from 5% to 2%, having regard to the significant collapse in revenue from this source as a result of the cut and the continued increase in turnover by bookmakers; and if he will make a statement on the matter. [25551/02]
The reduction in the rate of excise duty on off-course betting from 5% to 2% from 1 May 2002 was specifically targeted at safeguarding the Irish betting industry by reducing the incentive for Irish bookmakers to move offshore, in particular to the UK. On 6 October last year, the UK authorities abolished betting tax and replaced it with a gross profits tax paid directly by bookmakers on their profits. This initiative, combined with an increase in telephone and internet betting, provided an increased opportunity and greater financial incentive for the migration of much of the indigenous betting market to the UK. Many Irish bookmakers indicated that they could no longer compete with the tax-free betting offered by the UK bookmakers and were being forced to move part or all on their service abroad, in order to compete with foreign bookmakers. The reduction in the rate of excise duty was a significant step towards preventing this. The revenue for 2002 from betting tax is estimated to be in line with that fore cast for the year, which took account of the reduction in the rate announced in budget 2002. As is normal, I review all tax measures on a regular basis. As Deputies are aware no changes were made to this rate in budget 2003.
