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March 13, 2008
The land-based bingo industry is reeling from the news that the UK government’s latest budget, delivered by Chancellor Alistair Darling yesterday, will not be removing the hated so-called double tax by getting rid of VAT on bingo earnings. In what is being taken as an actual increase in the tax burden on the industry, the Budget also announced higher rates of amusement machine license duties. The Budget’s effects on the online bingo industry and on online bingo games operators remains essentially unchanged. Bingo online has enjoyed good growth over the last few years contrasting sharply with the fortunes of the traditional land-based bingo industry. The amount of people who play online bingo has increased as land-based bingo attendance declines. “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.” said Bingo Association Chief Executive, Paul Talboys. “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,” he added. Mr Talboys continued: “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. 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.” Written by John Witherspoon – Interested in free online bingo? Our great online bingo portal gives all the info you need.
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