Monday 14th of December 2009
Call for 18% bingo tax
The Bingo Association has argued that an 18 per cent tax rate would be fairer than the newly-announced 20 per cent levy.
Last week, Alistair Darling announced in his pre-budget report that gross profit tax on bingo clubs would be cut from 22 per cent to 20 per cent next spring.
That followed a surprise rate hike in April 2009 when the chancellor raised duty for bingo clubs from 15 per cent to 22 per cent.
At the time, the Treasury argued that the overall level of taxation for bingo clubs would fall because of changes to the way VAT was charged.
Bingo industry produces new evidence
However, the Bingo Association submitted new evidence in October, which convinced the Treasury that this was not the case, reports the Financial Times.
It showed that the Treasury calculations were overly optimistic because they were based on assumptions that the bingo industry would experience high levels of growth over the next five years.
Although welcoming the cut, Paul Tallboys, chief executive of The Bingo Association, feels the government should have gone further and reduced gross profit tax by another two per cent.
"If they have recognised the data was incorrect, then surely you put it right," he said. "Even that would leave bingo as one of the highest taxed forms of gambling."
Bingo clubs continue to face higher tax bills than similar operators in other sectors.
Casinos, betting shops, betting exchanges, the football pools and online bingo sites like Bucky Bingo are currently taxed at 15 per cent.
