A Sad Day For Bingo
More than 100 Bingo clubs in the UK could face closure after Chancellor Alistair Darling refused to end the unfair system of double taxation that applies to bingo revenues. Unlike casinos and betting shops, Bingo clubs have to pay both VAT (17.5%) and a gross profits tax (15%).
Bingo's revenue contribution to the Treasury has even increased when the Chancellor announced a rise in duty on gaming machines.
Bingo operators had warned the Chancellor that the removal of VAT was necessary to prevent further closures in an industry already hit hard by the loss of high-payout gaming machines and the impact of the smoking ban.
Paul Talboys, chief executive of the Bingo Association, said: “This is a slap in the face for Bingo players. 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 43 clubs have closed. This lack of action will now ensure further club closures with attendant loss of jobs and decrease in Treasury receipts. This was the Government’s chance to give clubs a level playing field and the basis upon which to build for a future. For each club that closes, the Exchequer loses around £700,000 per year in revenue across a wide range of taxes. Removing VAT would have secured a future for many clubs and revenue for the Government. “
Recent studies by the Henley Centre identified 108 out of 650 Bingo halls at risk of closure.
292words - Posted 13/03/2008 15:52:33
