TODAY, the UK Government has reduced the unfair taxation burden on UK Bingo Halls by bringing the rate of taxation down to 10% from the previous rate of 20%. George Osborne announced the details of the reduction in Bingo Taxes as a part of his Budget Speech for the upcoming year.
The UK Bingo industry has laboured under the yoke of this extra taxation for several years. This additional tax resulted in the closure of many bingo clubs across the United Kingdom. Bingo players should remember that the Labour Government imposed an extra 5% tax compared to the other forms of gambling.
Ironically, the current Tory/ Lib Dem Coalition has reduced taxes. We say ironically as bingo is supposedly a game for the working masses that the Labour Party purportedly represents. So how does it take a Tory-led government to cut taxes on the game of bingo?
The response from the UK Bingo industry has been immediate.
Rank who run Mecca Bingo halls across the country and online have stated that due to the decrease in taxation, they will open up an extra 3 Bingo clubs.
The decrease in tax also means that bingo clubs set for closure will stay open. This common-sense move has gotten portrayed as a populist measure. Who cares. It is long overdue and the right thing to do.
The tax reduction is not a significant loss. Some revenue will indeed get lost. However, it is also true that the new online gambling tax called Point of Consumption will more than compensate for this loss.
Add to that the fact that investment into land-based bingo means extra jobs and popularity, and it all adds up to a sage decision that will see the taxman get more cash than ever.
It also means that Bingo Operators can reinvest in their clubs and spark a new wave of bingo playing in the country.
Finally, the Boost Bingo campaign must be mentioned, which has led to a good fight on this issue.
Victory is at hand.