PRESS RELEASE

(Source : Government Information Centre)

Implementation of Budget Proposal to Increase Betting Duty for Horse Racing Exotic Bets

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The Legislative Council passed two resolutions today (June 11) to implement a Budget proposal to increase betting duty for horse racing exotic bets.

In his Budget Speech on March 5, the Financial Secretary announced the proposal to increase the betting duty from 19% to 20% to help raise revenue.

Exotic bets refer to six-up, treble, tierce, trio, double trio and triple trio. At present, 76% of the turnover on exotic bets goes to payouts, 19% to betting duty and the remaining 5% to the Hong Kong Jockey Club's commission. The resolutions increased the betting duty rate on exotic bets by 1% to 20% and reduced the payout rate by the same extent to 75%.

In moving the resolutions, the Secretary for Financial Services and the Treasury, Mr Frederick Ma said, "Betting duty is an important and stable source of recurrent revenue. In 2002-03, it generated $11.1 billion, representing over 7% of total general revenue. Of this, revenue from the duty on horse racing bets amounts to $9.7 billion, with $2.7 billion coming from exotic bets. It is estimated that, in a full year, additional revenue of $150 million will be generated from the increase in the duty rate on exotic bets."

The adjustments will take effect from August 1. Starting from the next horse racing season, betting duty on exotic bets will be levied and payouts for exotic bets will be set in accordance with the new rates.

End/Wednesday, June 11, 2003

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LC: Speech on first resolution made under Betting Duty Ordinance (11.06.2003)

LC: Speech on second resolution made under Betting Duty Ordinance (11.06.2003)