THE SUPREME Ventures Ltd. (SVL) proposal to rescind the 15 per cent taxation on lottery winnings has been submitted to the Ministry of Finance and Planning. Paul Hoo, SVL chief executive officer, said yesterday that the proposal had been formally submitted on Friday to the Ministry. Mr. Hoo had suggested earlier in the month that his company would advance the Government $500 million in tax revenues if it rescinded the 15 per cent tax on winnings.
"I have submitted my proposal," Mr. Hoo said. "I haven't yet got a response."
Sources at the Ministry said the proposal had been received but could not say what steps were been taken to address the issue it raises. "Addressing a hearing of the House's Committee on Tax Measures earlier this month, Mr. Hoo said his company would advance the Government $500 million in tax revenues if it rescinded the 15 per cent tax on winnings.
Mr. Hoo had said, "There should be no changes in taxes during the life of our current eight-year contract. In addition, a task force has to be put in place to stem the flow of illegal bookmaking - we have been losing an estimated $10 million to $15 million daily as a result."
Responding to questions about his views on the SVL proposal last week, Dr. Davies said at a Ministry press conference that the matter could not be dealt with until it was submitted in a written form.
Jamaica Lottery Company (JLC), the second biggest lottery company, has taken a somewhat different approach to the tax issue. Rejecting the 15 per cent tax on winnings, it said the tax should "be collected by a more appropriate method."
The JLC suggested a winnings tax of 12 per cent, based on a 60 per cent average payout of over $100 by all gaming entities would yield $1.2 billion from the industry.
The Government had initially suggested a 25 per cent tax on all lottery sales, to help fill a Budget financing gap. Following outcries from the sector, however, this was then adjusted down, and Dr. Omar Davies on July 7, signed a provisional tax order for the imposition of the 15 per cent tax on lottery winnings.
