Bingo tax burden too much?
Friday, April 4th, 2008Long before the March 2008 budget the UK government had been urged to remove the VAT it has placed on bingo games, in fact campaigns have been going on for the past five years to persuade the government to ease taxation on the bingo industry. However this year the campaign really stepped up when one of the constituents of Exchequer Alistair Darling, a bingo caller at Darling’s local Mecca club gave his voice to the campaign and sent a petition to Prime Minister Gordon Brown’s website. In early March the petition had over 900 signatures.
The issue arises as the current system seems to tax the bingo industry twice. The bingo companies that provide us with the service and enjoyment have to pay a bingo duty, which From 27 October 2003 is 15% of a bingo promoter’s profits in an accounting period, in addition to VAT of 17.5%. This is not a situation endured by casinos and bookmakers.
The effect of this added strain has been more evident in the non internet side of the industry, where around 90 clubs have closed in the past two years. A trend unlikely to change if the taxation policy is not altered. A trend that is reducing opportunity in communities to socialise, leading seclusion and less cohesion. A trend that results in a loss of local jobs. A trend that will reduce spending and lead to economic slowing in these areas. A trend that affects local businesses and reduces investment in the affected areas. But most of all a trend that reduces the quality of life for many people who no longer have the opportunity to partake in their favoured pastime.
Unfortunately Alistair Darling did ease the burden on the bingo industry this March, rather more; he increased it by delivering an inflationary rise on amusement machine licence duty.
Let’s hope our efforts make more of a difference next time around.




