Willie Penrose (Longford-Westmeath, Labour)
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Question 82: To ask the Minister for Finance if his attention has been drawn to the fact that the recent proposal by him to increase the turnover tax on betting shops from 1% to 2%, will not achieve the target of an increased €40 million in betting tax, but in fact over the next 12 months will lead to a significant number of said betting shops closing, in so far as there is a decrease in the turnover of these shops which will lead inevitably to unemployment in the industry; and if consideration has been given to alternative ways and options for raising the required money, which would safeguard the future of the industry; and if he will make a statement on the matter. [8204/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I announced in Budget 2009 that the betting duty would be increased from 1 to 2%. Subsequently, I met a wide range of representatives from the betting industry where the problems faced by the sector, including those arising from the Budgetary changes, were discussed. The Finance (No. 2) Act 2008 provides that the betting duty rate will be increased from 1% to 2% on 1 May 2009. The Act also provides that, as happens in the case of other business expenses, betting duty paid by a bookmaker on bets made on or after 1 January 2009 will be allowed as a deduction in computing the amount of profits or losses of the bookmaking business for Income Tax or Corporation Tax purposes. As I stated during the Finance Bill process, I intend to look at an overhaul of the betting tax regime for next year's Budget and Finance Bill.