Thursday 10th of December 2009
Bingo clubs given 2% cut
The bingo industry is celebrating after Alistair Darling announced a two per cent cut in taxes.
But it has warned that the fight goes on to get gross profit tax (GPT), payable by bingo club operators, returned to the 2008 rate.
In yesterday's pre-budget report, the chancellor unveiled what he himself described as a "popular" measure to reduce bingo club duty from 22 per cent to 20 per cent.
He also stated that the new rules will take effect from next year's budget.
Bingo bounces back from budget 2009
It marks the latest twist in a turbulent few months for the industry, which began in April 2010 when the chancellor unexpectedly declared that duty for bingo clubs would be raised from 15 per cent to 22 per cent.
That decision prompted a host of bingo club operators, including Buckingham Bingo, to form a pressure group.
I'm Backing Bingo called on fans of the numbers game to show their opposition by signing a Downing Street e-petition, joining the Facebook group and writing to their local MP.
Several sitting MPs - including Edward Timpson, Sandra Gidley, John Barrett, Tom Brake and Sir Patrick Cormack - have also criticised the measure in recent months.
The Bingo Association weighs in
Responding to the news, trade body The Bingo Association published a brief statement.
It noted: "While The Bingo Association welcomes the reduction in GPT from 22 per cent to 20 per cent, the fight continues to get bingo back to the 15 per cent rate of GPT that it was paying before the budget 2009 and paying the same rate of GPT as other gambling sectors."
A major European gaming group has estimated that the cut will boost its UK operating profits by £2.5 million per year.
However, Chris Sagner, head of tax policy at accountancy firm Ernst & Young, has explained why many bingo club operators are still far from happy.
He said: "This move may still represent a considerable next tax rise for some of the sector."
