Bingo Industry Fails With Tax Appeal

Government not planning to introduce new VAT rate for bingo firms.

The government has rejected claims that bingo operators should have their VAT rates cut or scrapped entirely.

A group of MPs had backed the bingo industry's campaign for a new tax regime, claiming that forcing companies to pay VAT and gross profits tax amounted to "double taxation".

However, exchequer secretary Angela Eagle said that scrapping VAT charges would not be an "appropriate solution" to the problems facing bingo operators.

"Our assessment remains that tax is not at the root of the industry's problems," she stated.

Meanwhile, a government insider told bingonews.com: "While the Treasury recognised the bingo industry's claims, it is politically impossible to cut taxes on gambling at a time of huge economic difficulty."

Liberal Democrat MP John Hemming claimed that scrapping VAT for bingo firms would only cost the government about £10 million.

He said that over 100 bingo clubs have closed in the UK over the last six years, with many operators struggling to stay in business due to the tax burden.