Oireachtas Joint and Select Committees

Wednesday, 27 November 2013

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Finance (No. 2) Bill 2013: Committee Stage (Resumed)

2:40 pm

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I thank the Deputy for this amendment. The taxation of remote betting operators is designed to level the playing field with traditional bookmakers and the Betting (Amendment) Bill 2013, published in July, provides the regulatory framework for this. The Bill was subject to a three-month standstill period under the EU technical standards directive. This commenced in July and a number of communications seeking clarification around aspects of the Bill have been received from the Commission and responded to by the Department in that time. Progress on the Bill is now subject to agreement on scheduling by the Whips and I am still hoping to be allocated time to progress the legislation through the Oireachtas before the end of this session.

There have been a number of calls for an increase in the rate of duty that applies to betting. This was also proposed as part of Sinn Féin's pre-budget submission. However, the Government's preferred approach has been to extend the base on which the 1% rate applies, ensuring that the tax is applied fairly widely on a level playing field for all. When we can be sure that we have in place a framework that captures all betting, the prospect of a rate rise can be explored. All taxes are reviewed on an ongoing basis by officials from my Department and the Revenue Commissioners and this one will be no different. However, the priority is to extend the tax to the remote sector.

As I am sure the Deputy is aware, if one applies a tax in one area of gambling but not remote betting, people will move into the latter. My understanding of the Minister's objective is that, by applying the 1% rate across the board, we can consider extending it at some future point. A level playing field is necessary. Gambling has witnessed much change in recent years, for example, online, on course and off course. We must reflect these changes in how we capture betting. The Minister's current priority is to establish a level playing field for everyone. As such, we will not accept the amendment.

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