I have long argued that one of the most overlooked reasons for the decline in racing support has been AFFORDABILITY.
A look at the latest statistics from SARS lends not inconsiderable weight to this belief :
Few will disagree that a reasonable estimate of the numbers living in South Africa is around 50 million once we factor in an 'allowance' for those who are here and drawing off the facilities but not officially so.
Registered taxpayers in South Africa now number just over 13 million. ( This is significantly higher than before ).
BUT.....due to primary rebates, allowable deductions etc., only 4,8 million of the 13 million are actually liable to pay income tax. Put it another way ; only 1 out of every 10 South Africans actually contributes to the fiscus through personal income tax.
Of this group of 4,8 million the wealthiest 500,000 account for no less than 57% of the income tax collected. So 1% of the population provides 57% of the personal income tax revenue. ( Note ! please do not confuse this figure with the TOTAL revenue collected as the figure for corporate taxes is excluded ).
On the other side of the fence sit no less than 15 million souls drawing social welfare benefits in one shape or form. At the very least they are unemployed. Yet they do contribute via duties and VAT on the goods they purchase.
This might well go some way towards explaining why there appears to be a reasonable market for buying horses but an increasingly dwindling market for punting them!
Certainly almost all owners would belong to the 500,000 mentioned above.
Traditionally racing has been supported by the working and middle class (as well as the better heeled) through punting. The truth may well be that, far from being disinterested, they simply cannot afford it!
Source : Statistics extracted from presentation to SARS by Dr Randall on 22/10/2012.
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