Gambling taxation: A comment

David Paton, Donald Siegel, Leighton Vaughan Williams

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

Smith (2000) argues that the Goods and Services Tax (GST) provides a more equitable method of taxing gambling than does a tax on betting stakes. In this comment, we demonstrate that the application of the GST to gambling is an example of a move away from commodity taxation in favour of ad valorem taxation. The economic literature on the subject suggests that ad valorem taxes are welfare superior to equivalent commodity taxes in numerous oligopoly settings. We contend that this literature provides additional support for the desirability of this change in tax policy and also note that the UK Government has recently decided to adopt a similar change.

Original languageEnglish (US)
Pages (from-to)437-440
Number of pages4
JournalAustralian Economic Review
Volume34
Issue number4
DOIs
StatePublished - Jan 1 2001
Externally publishedYes

Fingerprint

Taxation
Gambling
Tax
Betting
Tax policy
Commodity taxes
Government
Commodity taxation
Economics
Ad valorem tax
Oligopoly

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Gambling taxation : A comment. / Paton, David; Siegel, Donald; Williams, Leighton Vaughan.

In: Australian Economic Review, Vol. 34, No. 4, 01.01.2001, p. 437-440.

Research output: Contribution to journalArticle

Paton, David ; Siegel, Donald ; Williams, Leighton Vaughan. / Gambling taxation : A comment. In: Australian Economic Review. 2001 ; Vol. 34, No. 4. pp. 437-440.
@article{f9fa62fcef4b4c8d84d159566141998e,
title = "Gambling taxation: A comment",
abstract = "Smith (2000) argues that the Goods and Services Tax (GST) provides a more equitable method of taxing gambling than does a tax on betting stakes. In this comment, we demonstrate that the application of the GST to gambling is an example of a move away from commodity taxation in favour of ad valorem taxation. The economic literature on the subject suggests that ad valorem taxes are welfare superior to equivalent commodity taxes in numerous oligopoly settings. We contend that this literature provides additional support for the desirability of this change in tax policy and also note that the UK Government has recently decided to adopt a similar change.",
author = "David Paton and Donald Siegel and Williams, {Leighton Vaughan}",
year = "2001",
month = "1",
day = "1",
doi = "10.1111/1467-8462.00211",
language = "English (US)",
volume = "34",
pages = "437--440",
journal = "Australian Economic Review",
issn = "0004-9018",
publisher = "Wiley-Blackwell",
number = "4",

}

TY - JOUR

T1 - Gambling taxation

T2 - A comment

AU - Paton, David

AU - Siegel, Donald

AU - Williams, Leighton Vaughan

PY - 2001/1/1

Y1 - 2001/1/1

N2 - Smith (2000) argues that the Goods and Services Tax (GST) provides a more equitable method of taxing gambling than does a tax on betting stakes. In this comment, we demonstrate that the application of the GST to gambling is an example of a move away from commodity taxation in favour of ad valorem taxation. The economic literature on the subject suggests that ad valorem taxes are welfare superior to equivalent commodity taxes in numerous oligopoly settings. We contend that this literature provides additional support for the desirability of this change in tax policy and also note that the UK Government has recently decided to adopt a similar change.

AB - Smith (2000) argues that the Goods and Services Tax (GST) provides a more equitable method of taxing gambling than does a tax on betting stakes. In this comment, we demonstrate that the application of the GST to gambling is an example of a move away from commodity taxation in favour of ad valorem taxation. The economic literature on the subject suggests that ad valorem taxes are welfare superior to equivalent commodity taxes in numerous oligopoly settings. We contend that this literature provides additional support for the desirability of this change in tax policy and also note that the UK Government has recently decided to adopt a similar change.

UR - http://www.scopus.com/inward/record.url?scp=0035657780&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0035657780&partnerID=8YFLogxK

U2 - 10.1111/1467-8462.00211

DO - 10.1111/1467-8462.00211

M3 - Article

AN - SCOPUS:0035657780

VL - 34

SP - 437

EP - 440

JO - Australian Economic Review

JF - Australian Economic Review

SN - 0004-9018

IS - 4

ER -