GCT removal has horsemen raring to go

THE HORSE-RACING industry was set abuzz last night with Finance Minister Nigel Clarke’s announcement of the removal of the 15 per cent General Consumption Tax (GCT) on the importation of horses.

Clovis Metcalfe, chairman of the Jamaica Racing Commission (JRC) and Betting Gaming and Lotteries Commission (BGLC), said the GCT, when applied to all the attendant costs to land a horse on a farm or stable in Jamaica, is estimated to be a crushing 28 per cent of the animal’s purchase price, creating a major deterrent for breeders and racehorse owners.

On the coattails of Minister Clarke’s announcement, Metcalfe told The Gleaner the JRC would immediately establish a revolving-loan fund, administered by the Thoroughbred Owners and Breeders Association of Jamaica (TOBA), solely for the purpose of importing horses for auction.

“We already fund TOBA’s revolving-loan fund for horses at the annual Yearling Sale. However, this will be a separate fund, set up for the importation of horses. I plan to give TOBA $20 million in the first instance so we can get the ball rolling right away with probably 10 horses.

“There can be an auction every three months. My only ask is that they bring in a mixture of colts, mares and fillies to ensure that these horses can head to the breeding shed after their racing careers,” Metcalfe pointed out.

The GCT on horses has had a crippling effect on the quality and quantity of yearlings being produced by the dwindling number of stud farms across the country and a trickle-down to the number of starts per race at Caymanas Park racetrack operated by promoting-company Supreme Ventures Racing and Entertainment Limited (SVREL).

Solomon Sharpe, SVREL chairman, last night said the promoting company had been advocating from 2019 for the removal of GCT from the importation of horses.

“We have shared those sentiments with the horsemen to join us in advocating for same. SVREL is very happy that this has happened. We need to increase the number of races and racedays,” Sharpe emphasised.

“This will augur well for the future and will significantly help the two and three-year-old categories. It will eventually help to rebuild the ‘A’ Class days of old with eight foreign-bred horses in a race. This also augurs well for races such as the Mouttet Mile.

IMPORTANT HORSE-RACING INDUSTRY

“SVREL looks forward to collaborating with the Government on this initiative in maximising the output of the very important horse-racing industry in Jamaica,” he added.

Meanwhile, TOBA president Howard Hamilton said the Government’s decision was a “positive response” to the concerns of the racing industry.

“This is good for the breeding industry, which has suffered through the years to produce good horses and attract new owners,” Hamilton pointed out.

Metcalfe said an influx of horses would also help to alleviate owners’ cry for the improvement of purse money.

“If the racing stock is improved, this would excite punters and increase tote sales. If the tote sales increase, the purses will automatically increase because purses have been set at 49 per cent of gross gaming revenue, which is defined as sales less dividend to punters,” said the JRC/BGLC chair.