Hong Kong Jockey Club Warns Against Betting Duty Increases

by Mary Swire, Tax-News.com, Hong Kong

06 March 2002

The Hong Kong betting and tourism sectors were eager to make their voices heard ahead of Finance Minister Antony Leung Kam-chung's budget speech today.

Speaking on Monday, the Chief Executive of the Hong Kong Jockey Club, Lawrence Wong, warned that the Government should not consider increasing betting taxes in order to tackle the ballooning budget deficit, arguing that such a move would encourage punters to take their bets to illegal and offshore bookmakers, which would ultimately reduce the amount of revenue received from the legitimate betting sector.

'Our betting duty is already among the highest in the world and there is no room for further increases,' Mr Wong warned, adding that: 'I think the Legislative Council should pass changes to the Gambling Ordinance as soon as possible, in order to tackle local illegal bookmaking and illegal offshore betting.'

The Jockey Club chief also revealed that there is no scope to lift the current rate any further, as the club is already suffering following a 4% drop in betting volumes this season, compared with the same period in 2000 and 2001.

Meanwhile, the Chairwoman of the Hong Kong Tourism Board, Selina Chow urged the authorities earlier this week not to adopt the sales tax proposed by the Advisory Committee on New Broad-based Taxes, warning that it could have a detrimental effect on the jurisdiction's tourist industry.

'Even if tourists can claim a tax rebate, they may not be able to have a 100% rebate, as we have seen in examples from other countries,' Ms Chow said at the opening of the Hong Kong Flower Extravaganza. 'This may not deter tourists from coming to Hong Kong, but will dampen their shopping mood.'

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