UK Bingo operators to review gaming machine tax - Online Bingo News

The Treasury has started a consultation process to look into taxation on gaming machines installed at land based bingo clubs and venues. These gaming machines, in many cases, account for nearly 30% of a bingo club’s profits. The Government wants to avoid the severe backlash that it was at the receiving end of when it increased the rate of taxes levied on bingo halls in the UK.

Sarah McCarthy-Fry, Secretary to the Treasurer,  announced that a consultation document has been published and is available on the treasury website.

The bingo industry has received this move well though it is asking why a similar approach was not adopted at  the time of setting a new rate of bingo duty for bingo operators. It does seem that the Treasury is making an effort to be more careful, especially considering the strong nationwide protests and criticism that followed the increase in bingo tax rates last April.

The Treasury is open to consultation and comments and inputs are sought until 23rd October, 2009, giving stakeholders in the UK bingo industry time to make their representations regarding this document.

"I am publishing a consultation on the future of gaming machines tax policy, copies of which have been placed in the House library. Following reforms to gambling taxation over the last decade, five of the seven gambling tax regimes are now calculated on a gross profits basis. Gaming machines face a combination of amusement machine license duty (AMLD), a license fee paid before a gaming machine may be made available to play, and VAT at the standard rate on their takings.“

“Taxing on the basis of gross profits has been a success for other gambling regimes. The Government is considering whether to base the taxation of gaming machines on to the same basis, and wishes to hear from interested stakeholders," reads McCarthy’s statement.

Issues regarding VAT versus Gross Profit Tax (GPT) have yet to be resolved to satisfy all sectors within the industry- stakeholders, including UK bingo operators, gaming machine manufacturers and others.

Written by Rhea Williams for Bingostreet – your daily resource for bingo news dedicated to bringing you updates on events in the world of online bingo UK.