By Robert Hart, Staff ReporterTHE GOVERNMENT is still monitoring the impact of the imposition of taxes on gaming winnings, despite admitting to continuing reduced sales and diminished injections into the culture, health, arts, sport and education (CHASE) fund.
But, speaking last Tuesday in the House of Representatives, Dr. Omar Davies, the Minister of Finance and Planning, promised that a definitive assessment will be made 'shortly' on whether the 15 per cent tax should be adjusted or removed.
"I have been provided with the data on an ongoing basis and we are monitoring the impact. Shortly we will be taking a decision in terms of whether there should be modifications to the measure," he said. The Finance Minister, who was closing the debate on The Money Lending (Amendment) Act, was responding to an issue raised during the contribution of Opposition Spokesman on Finance, Audley Shaw.
Admitting that the take, in terms of revenue from the tax on winnings, had not been at the level anticipated, Dr. Davies however noted that the tax levels, in terms of the amount going into the Consolidated Fund, in which general Government revenues are placed, had increased.
"Many persons, including the persons in the gaming industry, lump together the contributions to good causes, which goes into CHASE, and the amounts which are paid to the Consolidated Fund," the Finance Minister said. He was attempting to address the 'confusion' that has led to the widespread belief that the introduction of taxes on winnings had failed to garner adequately beneficial revenues, in light of the potential crippling effect the tax could have on the gaming industry. The 15 per cent tax on winnings, Dr. Davies said, was intended to substitute for some of the taxes foregone in the 2003/2004 budget, such as taxes on pharmaceuticals and agricultural equipment. Those taxes were removed from a revised list of taxable items, introduced by Dr. Davies during the Budget Debate, in an attempt to close the $14 billion fiscal gap.
