It is expected that the Finance Bill Committee debates will see MPs urging the government to adopt a more sustainable rate of tax for the bingo industry today (Thursday).
MPs across the divide will argue that current rate of tax levied on bingo clubs is stifling investment and growth in the industry, after Shadow Economic Secretary Cathy Jamieson tabled a new clause to the Finance Bill.
It is claimed by some within the industry that large scale investment is being held back by the 20 per cent Gross Profits Tax levied on bingo, accentuated by irrecoverable VAT whereby, unlike other industries, bingo halls are unable to claim back VAT on overheads, such as refurbishment costs.
Bingo club operators have made public their commitment to increasing the level and scale of investment in bingo clubs if a tax regime of 15 per cent GPT is introduced instead.
The desire for a change in tax is backed by analysis from Ernst and Young which suggests that a reduction to 15 per cent tax would mean an increase in revenue to the Exchequer by around £35m over a four-year period.
Miles Baron, chief executive of the Bingo Association, said: “The proposed new clause in the Finance Bill reflects the widespread recognition of the role bingo clubs play in communities up and down the country, and the parliamentary support that exists for the industry on all sides of the House.”
