Minister for Finance, Charlie McCreevy, announced in his budget today that off-course betting tax will be cut to two per cent from five per cent from May 1st 2002.
Bookmakers had hoped that the tax would be reduced to 1 per cent and had said they would make no deductions from punters if that was the case.
But Paddy Power boss Stewart Kenny was quoted in the Racing Postyesterday as saying that "if the tax is only reduced to two per cent, we feel we would have no choice but to charge punters the full tax."
British punters have been able to back tax-free since October 6th of this year while Irish racegoers also pay no tax on their bets at the track.