Lightbourne
Johnson
Vernon Daley, Staff Reporter
THE SENATE yesterday suspended examination of the Betting, Gaming and Lotteries Act, because of a disagreement over whether free lottery tickets issued by the Jamaica Lottery Company should be taxed.
Under a section of the proposed legislation, the gross weekly revenue from lottery sales would be subject to a 23 per cent tax. However, Opposition Senator Dorothy Lightbourne argued that the Bill was not clear whether free tickets issued by the company to players were included in the definition of gross revenue.
She said her understanding was that the free tickets would not be treated as tickets that have been sold and therefore would not attract the tax. But, the section does not state this precisely, she noted. "Whenever we are imposing a tax we must use words that are clear, that everybody understands what they are paying taxes on," Senator Lightbourne said.
The Bill, which was passed by the House of Representative, seeks among other things to regularise the tax which was announced by Finance Minister Dr. Omar Davies in his Budget presentation earlier this year.
Government Senator, Alfred Rattary, disagreed with Senator Lightbourne, stating that the section was very clear in what it sought to achieve. He said the free tickets issued are meant to be treated as income and not as a prize and therefore should attract the tax. "There is no reason to exclude from gross earnings, free tickets, than there is to exclude from it expenses and costs," he said.
Opposition Senator Anthony Johnson noted, however, that if Senator Rattray was right then the thinking behind the Bill would be flawed. What the section would mean is that when the company gives away a free ticket they have to also pay a tax on it, Senator Johnson said. "As the Bill is now drafted the Collector of Taxes would indeed have the right to charge taxes on the free tickets."
The debate between members over the section became increasingly heated and confused with Leader of Government Business and the pilot of the Bill, Senator Burchell Whiteman, eventually declaring that after hearing the arguments he was not sure what was the real intent of the Bill.
The Leader of Opposition Business, Senator Dr. Ossie Harding, then suggested that there be a suspension of the clause-by-clause examination of the Bill while technical advice was sought on the matter.
"In fairness to the Minister it's a technical matter and he can't determine this now, so let us get the proper advice," Senator Harding said. The members agreed that this should be done ahead of next Friday's sitting of the Senate.
