The government will not change the VAT regime on bingo halls despite industry claims that the tax situation is unfair and will cause hundreds of bingo halls to close.
The bingo industry has mounted a vigorous campaign to abolish VAT being charged on free bingo tickets, which they claim amounts to double taxation.
But Treasury secretary Angela Eagle has ruled out any changed to the VAT regime, saying it would not be an “appropriate solution”.
A government insider told Bingo News: “While the Treasury recognised the bingo industry’s claims it is politically impossible to cut taxes on gambling at a time of huge economic difficulty. The Daily Mail would absolutely slaughter us and I doubt The Guardian would be terribly impressed either. It was just not going to happen.”
The bingo industry claims that because of double taxation they face a total taxation bill of 32%, versus 15% for most UK bingo based gambling companies. But Ms Eagle said that bingo halls actually faced a 25% tax bill which was comparable with other UK gambling companies.
She said: “Our assessment remains that tax is not at the root of the industry’s problems and nor do we believe that alteration of the tax regime would be an appropriate solution to them.”
Bingo industry leaders say that up to 100 clubs could close in the next 12 months as many had been waiting for a VAT ruling from the government before deciding whether to shut their doors.
News Sources:- Bingo News
Posted by Debbie Archer on 26 February 2009
The bingo industry has mounted a vigorous campaign to abolish VAT being charged on free bingo tickets, which they claim amounts to double taxation.
But Treasury secretary Angela Eagle has ruled out any changed to the VAT regime, saying it would not be an “appropriate solution”.
A government insider told Bingo News: “While the Treasury recognised the bingo industry’s claims it is politically impossible to cut taxes on gambling at a time of huge economic difficulty. The Daily Mail would absolutely slaughter us and I doubt The Guardian would be terribly impressed either. It was just not going to happen.”
The bingo industry claims that because of double taxation they face a total taxation bill of 32%, versus 15% for most UK bingo based gambling companies. But Ms Eagle said that bingo halls actually faced a 25% tax bill which was comparable with other UK gambling companies.
She said: “Our assessment remains that tax is not at the root of the industry’s problems and nor do we believe that alteration of the tax regime would be an appropriate solution to them.”
Bingo industry leaders say that up to 100 clubs could close in the next 12 months as many had been waiting for a VAT ruling from the government before deciding whether to shut their doors.
News Sources:- Bingo News
Posted by Debbie Archer on 26 February 2009
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