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New Zealand Government May Consider 'Sports Tax' On Gaming Machines

by Robert Lee, Tax-News.com, London

28 September 2001

New Zealand opposition National Party has claimed that the government intends to impose a 'sports tax' on slot machines that could be as high as 30 per cent and collect an extra NZ$50 million a year in revenue. Usually, any such tax would go to the sports clubs but the government wants to invest the money instead on the arts and Maori culture.

National finance spokesman Bill English told reporters: 'Many sports clubs use the money ... to pay for their activities and clubs with no facilities frequently purchase their gear with money from a local pub's slot machines. This Government tax grab will kill that community sponsorship in many cases.'

New Zealand Communities Trust spokesman, Bill Day, has confirmed that officials from gaming trusts across the country have been invited to meet with Internal Affairs Minister George Hawkins to discuss new licence requirements due to come into force in October. He said there a lot of rumours were doing the rounds regarding such a tax.

When questioned by the media Minister Hawkins would not comment on the rumoured tax but he did say that there will be an announcement in the near future which will please the sports clubs, 'Bill English is living in a world of fantasy,' he said.

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