Higher taxes will destroy us

PRESIDENT of the Amusement Gaming Association (AGA) Russel Bahadoorsingh has warned increased taxes will destroy the gaming industry and what is needed instead is enforcement.

The AGA in a statement yesterday was responding to statements made by Finance Minister Colm Imbert in his budget wind-up on Thursday, which they described as “simply wrong and incorrect.”

Bahadoorsingh said he was the one referred to as a representative at the Joint Select Committee on Gambling Control Bill (2016) on September 5.

“I gave testimony evidence about amusement games in Trinidad and Tobago and was available to share my experience and expertise to the JSC. It was pellucidly clear that Minister Imbert was not prepared to listen to our position but instead was stubbornly handcuffed to his preconceived incorrect ideas.”

Bahadoorsingh said this “rigid position” of Imbert’s on Thursday was reflected in the Government’s position.

He challenged the minister to provide facts and data to support his claim of there being 5,000 bars in the country. Bahadoorsingh also commented on Imbert’s statement that the Finance Ministry should be collecting $60 million in takes but the actual figures is around $8 million.

“Therefore the problem is collection and enforcement of existing taxes not a 100 per cent increase on the industry. Will those persons who are not presently paying the low tax rate now pay a higher tax? The incompetence of the collection and enforcement will not be solved with an increase in taxes.”

He said the minister also stated that casinos are owned by foreigners but bars are owned by the “local small man.”

“What’s going to happen when all these local small businesses cannot afford to continue to function as a result of the increase in taxation? The increase in taxation will result in employee layoffs.”

Bahadoorsingh said the way that bars are regulated under liquor licence laws they have to pay the gaming machine taxes before they get a licence.

“The minister said that collection for this year was $8 million which means that by increasing the taxes at 100 per cent he is essentially taxing the ones that are already compliant out of business.”

Bahadoorsingh said if the minister had meaningful discussions with the AGA they would have been able to enlighten him on the proper way to enforce the existing tax process instead of increasing taxes “which we believe will only destroy the industry and lead to lower tax collection and force people to illegally operate their machines.”

He said the AGA remains open to dialogue on the matter with the minister to clarify many of the misconceptions he has about this industry.

On October 2, in his budget representation Imbert announced a number of new tax measures for the gaming industry which are to take effect on January 1, 2018.