Tax very much!
In our recent article titled Tax Man Double Whammy, we reported on the new
tactics the tax man is using to squeeze more tax out of ever-stretched bingo
clubs.
If you weren’t aware of our article, bingo is uniquely subject to double
taxation (17.5% VAT and 15% Gross Profit Tax). It is a double tax whammy! The
bingo industry has been lobbying for several years now against the unfair
taxation which is ultimately passed on to you, the consumer, when you go to play
bingo at the local club.
In our previous article, we highlighted that a petition had been set up on the
10 Downing Street website to lobby against this seemingly unfair taxation. If
the petition attracted over 200 submitted online signatures then the Prime
Minister would be personally obliged to read it.
However, iluvbingo has been advised that this petition has been rejected by
Government and in response to the online petition, they have stated;
“The Government has given serious consideration to the points raised by the
bingo industry and we looked carefully at the evidence the Bingo Association
provided. However, our assessment remains that tax is not at the root of the
bingo industry's problems and we do not believe there is a tax solution.”
The Government does not feel that the double taxation issue is a reason for the
many closures of bingo halls around the country. Perhaps they believe the
smoking ban is to blame.
However, coupled with the lower attendance figures due to the ban, the issue of
high taxation is only exacerbating the matter and forcing more clubs into
decline. Iluvbingo’s Rosie said that “bingo clubs have been hit hard enough due
to the smoking ban, but to continue taxing them heavily will discourage even
more people to go to bingo. If bingo clubs are being taxed hard, then they will
only pass it on to the bingo player. Bingo will just become more expensive and
people will stop going.”
The question that we have to ask is that are the Government shooting themselves
in the foot? By continuing to tax clubs heavily will result in even less people
going to bingo which in turn, will force more clubs to close, meaning that in
the long run, the tax man is going to lose out as they won’t be getting any tax
at all from the clubs!!
Yet again, the Government’s short-sightedness in trying to help the ailing bingo
industry will end up biting them and who will they then turn to for more tax??
Article was written by Crystal Page at
iluvbingo.co.uk
This article may be reproduced in full or in part providing that credit is given
to Crystal Page at iluvbingo.co.uk