The Hong Kong Jockey Club (HKJC) has hit out at a proposal from the New People’s Party (NPP) to increase the region’s football betting duty by an additional 30%, saying the plan lacks “understanding”.
The current rate is set at 50% on net stake receipts, but the NPP proposal would increase this to 80%, which in turn would mean the HKJC would have to pay significantly more tax.
The HKJC estimated that if the duty change were to be approved, the amount it pays in tax would jump from the current HK$25.00bn (£2.58bn/€2.94bn/US$3.19bn) to HK$31.00bn, while revenue would fall from HK15.00bn to HK$9.00bn, a decline of 40%.
“It will result in a zero surplus at best or more likely a negative one, preventing the club from making necessary investments to secure its future and from contributing to the community,” the HKJC said.
“In reality, however, consumer behaviour can be highly dynamic. Any perturbation such as a tax increase, or simply the perception of such, could easily result in a dis..