Bingo Tax Ruling Takes A Surprising Turn

The long-winded row over bingo tax has taken an unexpected turn this week in the Pre-Budget report thanks to the Chancellor of the Exchequer Alistair Darling.

When the next budget comes into force, bingo duty will be slashed from 22% to 20%. Some of the largest groups in the bingo industry such as Mecca and Gala have seen a downfall in finances due to the rise of online bingo, the smoking ban and the raise of bingo tax earlier this year.

Leaders of the bingo industry and its dedicated members have spent months protesting about the unfair rise, which was raised from 15% to 22% and since Alistair Darling cut the percentage the bingo community have been showing gratitude by wearing Darling masks and waving banners.

Those against the rise previously argued that the initial rise would cost the bingo industry 30 million a year and now with Darling’s intervention the total can be reduced by 5 million.

Paul Talboys of the Bingo Association said that the new ruling was a ‘pleasant surprise.’ He added: ‘Bingo is the most harmless, most positive form of gambling and yet it paid one of the highest rates in taxes.’

According to the Times Online, industry figures regarding the number of bingo clubs slumped from more than 700 to 590 in the past couple of years. Alistair Darling has now saved a number of clubs from closure even if there is only going to be a 2% cut enforced. Not only has the Chancellor rescued the clubs but he has saved thousands of jobs as well as keeping the bingo industry alive.

Anbreen Khan is the Director in the Indirect Tax practice of Deloitte – he said: ‘This is a welcome announcement for an industry which has suffered an increasing burden of taxation – especially given the ‘soft gaming’ nature of bingo.’

‘The announcement will translate clubs into significant yearly savings for each club. Although, the cut is only two percentage points it shows that the Government is paying heed to a strong campaign from the industry shouldering a significant burden of taxation.’