Bingo players call for tax rise u-turn (From Bradford Telegraph and Argus)

Bingo players call for tax rise u-turn

8:30pm Thursday 14th May 2009 in

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Bingo players are hoping the number could be up on a Government’s decision to raise duty on the game to 22 per cent.

Customers and staff at the Mecca bingo hall in Bradford city centre have been lobbying MP Marsha Singh with letters asking for his support.

They say it is not fair that licensed bingo clubs have to fork out 22 per cent tax on their profits whereas all other gaming venues, on and off-line, only have to pay 15 per cent gross profit tax.

Mecca’s general manager Tristan Allison said: “We’ve sent about 160 letters so far to Marsha Singh.

“We haven’t heard back yet but we’re hoping for a yes to him supporting our campaign.

“It’s grossly unfair that we have to pay a massive 22 per cent when it’s only 15 per cent for playing bingo online, putting bets on in shops or playing the pools.”

Mr Allison said Mecca, which is part of Rank, had its suspicions that putting bingo duty up to 22 per cent was “backlash” from the Treasury after the company took them to court.

He said: “Rank took the Treasury to court because they were making us pay tax twice, normal VAT and then gross profit tax.

“The ruling we got said it was unfair so we stopped paying VAT and started claiming payments back.

“We were only paying gross profit tax and then the Government decides to put that up to 22 per cent – just for us. It’s as though they are having a pop back at us. We think we should be paying 15 per cent like everyone else.”

The only exception is that tax paid by casinos varies from a scale of 15 per cent up to 50 per cent, he said.

“It would be criminal if bingo clubs closed because of this unfairness,” said Mr Allison.

“It’s not just about us being a business and making a profit. A lot of the people in the community rely on us for having somewhere to go and to meet other people.

“We have one of our members who rings us every night at seven to tell us she’s got home safe, had her tea and locked the front door. Who would she ring if we weren’t here?”

Marsha Singh said: “I am in the process of replying to Mecca.

“I’ve written to the Chancellor of the Exchequer and will continue to press for changes.”

A Treasury spokesman said: “Bingo’s effective tax rate is now 22 per cent, down from 24-25 per cent prior to this year’s Budget, and down from 35 per cent as recently as 2003.

“Bingo’s effective tax rate is now in line with that on casinos.”