THE PROPOSED INCREASE in taxes for lottery organisations will hit the Barbados Olympic Association (BOA) hard, according to BOA secretary general Erskine Simmons.

The proposals formed part of Prime Minister David Thompson's 2008 Budget plan, which he outlined Monday in Parliament.

The rates for lotteries operated by approved sporting organisations will be increased from three per cent to 11.

"We were a bit surprised in terms of the taxes imposed. This will tremendously cut our revenue which we use for our developmental programmes, which, while appreciated, was already insufficient," Simmons stated.

Because of this, he said the BOA would now have to look at how else to utilise its funds and restructure programmes to suit.

Simmons said the BOA had been appealing for help from corporate Barbados, which help was now needed more than ever.

When quizzed about the withholding tax, which will see Barbadians having to give up 25 per cent of all payouts over $1 000, he said it was something he expected.

"This is new to Barbados but not uncommon worldwide. It was just a matter of time. Overseas you have to pay back a percentage of large jackpots so it was bound to happen here sooner or later," he said. (CA)