The UK government has decided against offering a VAT rate cut to bingo halls, despite their pleas and claims that the tax is forcing clubs to close down, costing the country hundreds of jobs.
Exchequer Secretary Angela Eagle ruled that altering the tax system for bingo halls would not be an appropriate solution.
MP John Hemming of the Liberal Democrats called for VAT to be scrapped in the case of bingo halls, pointing out that other forms of gambling only pay a tax of 15%, while bingo halls face a cumulative tax of 32%.
Eagle dismissed this claim, stating that the clubs were actually taxed at 25%. She also said that other forms of gambling attracted other forms of taxation, and bingo halls paid an ‘average’ level compared to most forms of gambling.
Mr Hemming believes that ministers ‘had it in’ for bingo, and stated that scrapping VAT on bingo would only cost around £10 million. He said that more than 100 clubs had been closed down in the last six years, leading to more than 3,500 job losses.
Eagle responded by saying “Our assessment remains that tax is not at the root of the industry’s problems and nor do we believe that alteration of the tax regime would be an appropriate solution to them.”
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