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Government Decides Bingo Tax Will Stay at 22 Percent

July 14th, 2009

The UK Government recently announced that there would be no change in the bingo tax, disappointing bingo club owners and bingo fans all over the country. The tax amendment was rejected by government officials after many parliamentarians failed to make a strong protest against it.

Officials from the UK government had gathered together to debate over the issue of whether the 22% duty on land based bingo clubs should be dropped to 15%. However, despite the strong protests of the bingo community, the UK parliament arrived at the conclusion not to alter the bingo tax.

The bingo industry was not made aware of the tax hike from 15% to 22% until after it was instituted the April 2009 budget. Since the industry had little or no prior notice about the tax hike, protests against the tax hike emerged almost immediately, with the bingo community banding together to get a tax amendment.

The bingo community had protested strongly against the tax by making appeals to local parliamentary members and sending out petitions signed by hundreds of bingo members to parliament. A recent protest on the green staged by the bingo community marked one of the strongest appeals against the tax. The Back to Bingo campaign was yet another anti-bingo tax entity that staged an online effort to get the tax cut down to 15%.

However, none of these efforts were successful and there is great disappointment among the UK bingo industry that will have to pay the 22% fee unlike other industries which will be paying 15%. The current bingo tax and the smoking ban have deeply affected the profit margins of the industry.

The combination of the smoking ban, the 22% tax and the economic recession has resulted in several bingo halls in the UK closing their doors. According to member of an independent bingo hall “a thriving bingo club paying 15 percent is much better than a struggling club paying 22 percent that’s planning to close.”

The closed bingo clubs have also put many people out of work in addition to affecting the bingo community as a social entity.

Some members of the bingo community have expressed their anger at Mr. Parmajit Dhanda, an MP from Gloucester, who was unable to reduce the tax hike after he had initially claimed to support the amendment.

“It is incredibly disappointing, especially considering he was the one who put an Early Day Motion forward,” said Paul Hornigold, manager of Mecca Bingo in Eastgate Street.

Sky Woods

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Government Decides Bingo Tax Will Stay at 22 Percent

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