According to the Irish Bookmakers Association, outlets in Limerick will like their colleagues across the country, be “forced to close down” following the “irrational and disastrous” decision to double the rate of betting duty from 1% to 2% in the recent budget.

In statement to the Limerick Independent the IBA said that the move will “immediately force the closure of sole trader bookmakers” and make it extremely difficult for small companies to survive.

The organisation has now called on the Minister for Finance, Brian Lenihan, to reverse the decision.
“While understanding the difficult situation facing the country, it must be recognised that far from being in the national interest, this anti-business and anti-consumer move will result in even greater losses to the Exchequer and the economy,” the Association said.

“It penalises small independent businesses to the benefit of online and telephone gambling which is operated through offshore companies making no contribution whatsoever to the State,” a statement added.
Since 1999, bookmakers’ share of the Irish gambling market has fallen from 91% to about 50%, according to the IBA.

Betting Duty is unique in Ireland as the only double taxation levied on any business in any sector and it is paid directly by bookmakers on the basis of gross turnover, and is payable even if the business suffers a loss.

Any profits made by the business are then further subject to tax in the normal manner, with sole traders paying at the appropriate PAYE rate.

Bookmakers are not permitted to claim the taxation as a deductible business expense as the tax is paid directly by bookmakers and not passed onto consumers. 
Meanwhile, Budget 2008 has given a boost for the local construction industry, according to Construction Industry Federation boss, Tom Paarlon.

In a statement he welcomed a number of initiatives in the budget aimed at maintaining employment in construction while at the same time providing opportunities for potential homebuyers in Limerick. 
“This is a very tough budget and it includes a range of spending and taxation measures that will impact on consumption in Limerick and the wider economy. There are a number of welcome measures in terms of the maintenance of employment within the construction industry,” Mr Parlon said.

The CIF chief also stated that the government were correct in launching a revised housing loans scheme initiative, which is to be administered by a small number of local authorities on a regional basis countrywide.  

“The increase in mortgage interest relief for first time buyers throughout Limerick is welcome,” Mr Parlon said.

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