UK Government delivers verdict on Bingo
A petition for fans of both online bingo and land-based bingo to voice their concerns regarding the unpopular taxation measures of the Government has received a response from 10 Downing Street. The petition, launched and submitted by Michael Holden held 2,577 signatures disapproving of the increase in duty paid by land based bingo halls from 15% to 22% by its deadline date of 12th September 2009.
Now, 6 weeks on, the Government has offered their response to the anger expressed by those who signed on the dotted line to save bingo.
In their formal response the UK Government stated, “The Government continues to recognise the important social role played by bingo clubs in many communities. Budget 2009 introduced a package of reforms intended to simplify the bingo tax regime, continuing a process of reform that began in 2003. Bingo participation fees became VAT exempt, and bingo duty was increased to 22%. The Bingo industry had been campaigning for some time for VAT exemption on bingo participation fees, and the bingo duty increase should not be seen in isolation.”
So whilst it seems like campaigners are getting their voice heard, at the same time, it seems like the Government are refusing to budge on the issue. Although as correctly stated, the Government increased taxation duty to compensate for the scrapping of VAT, the move was seen by many in the bingo industry as a chance for the Government to take with one hand what it gave with the other. The scrapping of the VAT had much more to do with European Laws that were passed, enabling companies like the Rank Group to begin landmark cases for the reclamation of millions of pounds in overpaid taxes from Her Majesty’s Revenue and Customs.
After the Rank Group won, the Government were quick to remove the double taxation, claiming the move followed considerable consultation and pressure from the Bingo industry. However, the seven point rise in taxation was announced simultaneously, and despite strenuous pleas from the already dwindling land based bingo world that the hike in tax could signal the end for many independent operators, it seems like we have really reached a stalemate with this one. What makes the issue more pertinent for many is that the game of bingo is seen as one of the softest forms of gambling, and yet many other gambling sectors, including online bingo, are still taxed at a much lower rate.
Although campaigners behind the high profile “I’m Backing Bingo” initiative have taken to Facebook, numerous blogs and despite an overwhelming display of industry wide support outside Parliament in July, it seems like whilst fans, players and operators can unite to back the game of bingo, the Government can’t bring themselves to.
With the number of land based local bingo halls dwindling monthly, we hope that the industry can find some way to change the Government’s viewpoint and save the game of bingo as we have known it.