Finance Minister Winston Dookeran yesterday announced increased penalties for unlicensed betting operations and illegal bunkering.

Dealing with the issues as he piloted the Finance Bill at the Parliament sitting at the Port of Spain International Waterfront, Dookeran said the Betting Levy Board advised that the income derived from taxation was diminished as a result of unlicensed betting activity which not only contravenes the provisions of the Gambling and Betting Act, but also generates no tax revenue.

He said the board further advised there was a problem in the under-reporting of taxable income by licensees.

The Betting Levy Board, said Dookeran, retains one half of the taxes to support the development needs of the horse racing industry and the other half is required to be remitted to the Consolidated Fund.

After discussions with the board, he said it was agreed that penalties will be increased.

Unlicensed betting can see the increase of the fine from $50,000 and imprisonment for two years to $250,000 and same jail time.

Where a licensee fails to pay the tax or levy, the fine was increased from $50,000 and six months' jail to $250,000 and six months' imprisonment.

Dookeran also announced an increase in fines for people found guilty of illegal bunkering.

He said the Petroleum Production Levy and Subsidy Act will be amended to increase the fine of $10,000 for a person who exports or attempts to export petroleum products obtained from sales by retail.

To curb this "black market" operation, which amounts to some $750 million per year, Dookeran said people who export or attempt to export petroleum will now be liable on summary conviction to imprisonment for five years and to one of the following fines:

• for volumes no greater than 40,000 litres: $500,000;

• for volumes greater than 40,000, but no more than 160,000 litres: $2 million;

• for volumes greater than 160,000 litres: $6 million.

The general penalty provision of the Act was also amended so that a person who contravenes or fails to comply with the Act or any regulations will no longer be fined $1,000 and six months' jail, but $10,000 and two years' imprisonment.

Failure to comply with provision of the Value Added Tax Act is also going to attract stiffer penalties.