Bingo bosses highlight tax problems faced by operators and clubs
Posted by Epiphany Solutions on 27 Apr 2009 at 14:04
Bosses at the Treasury are under fire from bingo companies, with some executives saying parliament is being misled over how much their sector has to pay in tax compared to other forms of gaming.
Some bingo clubs have been hit hard by the recession, the smoking ban and other rules this year, with sector operators wanting ministers to be more upfront about how much tax they end up paying.
Bingo operators have to stump up 15 per cent gross profit tax and 15 per cent VAT, according to the Telegraph.
This is compared with betting shop, casino, and football pools operators, who don't pay VAT. Poker played in casinos is subject to VAT, although this does not incur betting duty.
Figures in the paper's report also show there are now 585 bingo clubs, compared to 700 in 2003.
The Telegraph reports an April 1 meeting involved head of the Bingo Association, Paul Tallboys, and bosses from one of the top companies in the market, Rank.
At the meeting treasury officials reportedly admitted the effective rate of taxation paid by bingo clubs was between 24 and 25 per cent.
This compares with 22 per cent for table games in a casino, 20 per cent to 22 per cent for gaming machines, and 15 per cent for off course betting.
The Telegraph says Treasury minister Angela Eagle has often said to MPs that "the level of taxation for bingo is about the average for gambling".
Quoted by the paper, a spokesman for Rank said: "I would argue that that's pretty misleading. If you have one paying 25 per cent and the other 20 per cent or less, they are not comparable. If the Treasury said that on income tax, people would not be happy."
The Telegraph also quoted a spokesman for Gala, which also runs bingo clubs, as saying it would continue to "press the case" for lower taxation for the sector.
