Tax Yield.

Dáil Éireann Debate, Tuesday - 18 November 2008

Tuesday, 18 November 2008

Ceisteanna (100)

Joan Burton

Ceist:

164 Deputy Joan Burton asked the Minister for Finance the extra revenue the Exchequer is expected to receive in a full year as a result of doubling the betting tax from 1% to 2%; if he, or his Department or outside consultants have conducted studies into the expected impact that this could have on the bookmaking industry, in particular on smaller bookmaking operations; if it is expected that this tax would be passed on to the consumer or absorbed by bookmakers from their profits; and if he will make a statement on the matter. [40579/08]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

An increase in the Betting Duty from 1% to 2%, based on current information, would raise an estimated additional €36m in a full year, however it is clear that betting turnover is lower than had been expected so this level of additional revenue might be optimistic. Representatives of the sector have indicated that some participants will face a very challenging position in 2009.

The Finance Act 2006 provided that bookmakers are solely liable for the Betting Duty. Subsequent to the Budget announcement, I have met a wide range of representatives from the betting industry where the problems faced by the sector, including those arising from the Budgetary changes, were discussed. I will bear these in mind in the context of the Finance Bill.