Bingo Tax Burden
The Chancellor of the Exchequer failed to remove VAT from bingo in his budget on 12 March, but he did decide to increase licence duty on the amusement machines that many bingo players also like to play.
The bingo industry has been unanimous in expressing its disappointment in this, as taxation is one of the factors threatening to cripple the game in the UK.
Paul Talboys, who is Chief Executive of the Bingo Association, said: “This is a slap in the face for bingo players across the country. There is no reason why they should continue to be penalised by double taxation when other gambling products pay only a single tax. The industry is struggling to deal with the combined impact of double taxation, the removal of gaming machines and the impact of the smoking ban. In the last fourteen months alone some 43 clubs have closed. This lack of action will now ensure further club closures with attendant loss of jobs and decrease in Treasury receipts.
“Despite repeated questioning the Treasury has yet to provide a credible argument in support of bingo’s double tax position. This was the Government’s chance to give clubs a level playing field and the basis upon which to build for a future. A large number of MPs from all parties have actively supported us, as they understand the importance of bingo clubs in communities across the country. In taking our case forward we will be asking them to press the Chancellor further during the passage of the Finance Bill to explain his failure to act.”
The Henley Centre has recently identified no less than 108 clubs that are at risk of closure, and if this happens entire social networks could suffer.
“The Association made it clear in discussions with the Prime Minister and The Treasury that failure to remove VAT will cost The Treasury in the long run,” Mr Talboys said. “For each club that closes, the Exchequer loses around £700,000 per year in revenue across a wide range of taxes. Removing VAT now would have secured a future for many clubs and revenue for the Government. It is astounding that the Government can argue ‘this is not a tax issue’ when bingo is, by the Treasury’s own admission, the only gambling product to pay two taxes in this way.”
18th March 2008
Article Last Updated: 19/03/2008 09:46:32
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