In a cruel double blow for racing, the state has recently increased betting on tax on the tote from 10 per cent to 20 per cent.
In a cruel double blow for racing, the state has recently increased betting on tax on the tote from 10 per cent to 20 per cent. The sport would now give punters a vastly diminished return. Vivek Jain chairman, Royal Western India Turf Club (RWITC) talks to Hemal Ashar about how the state government is hammering nails into the racing coffin with this move.
Excerpts from an interview:
When was the decision to increase betting tax on the tote from 10 per cent to 20 per cent taken?
The notification was dated March 31, and the tax was effective from April 1, 2010. Strangely the Club was not sent an official copy of the notice nor formally intimated.u00a0 It was handed over to a peon by chance on a visit to Mantralaya on April 19.
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What is the percent increase of tax by the government? How would it affect returns for the punters?
The tax rate has been increased by 100%. In no industry is an increase made by such a whopping percentage at one stroke. The Club was given no opportunity to present its case. The returns to punters would fall dramatically encouraging a diversion of bets to illegal channels to avoid paying such a heavy upfront incidence of tax.
The club was trying to bring down the tax since the past few years. Is this a huge setback?
Yes, the Club had repeatedly represented for a reduction in tax to five percent. We also had informal acceptance from the Finance Ministry in the State. Hence, the suddenness and quantum of increase has come like au00a0 bolt from the blue and will be hugely detrimental to the sport.
This has been done with an eye to increase revenue for the government. Yet, it may have the opposite effect...
A reduction in tax means more revenue to Government. We don't have to look far for a comparable model- Bangalore is a shining next-door example of what a pragmatic tax policy can do for the sport and the State.
Racing continues to be shoddily treated by the government...
Yes, the sport continues to get step motherly treatment. In Mumbai, the racecourse is a genuine green lung. The Club is a huge contributor to the State. We run the only legalised betting operation in the city professionally and with expertise. It is unfortunate that the State overlooks all of this and we are always under threat in our operations.
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