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The Bingo Association has welcomed the announcement of a two per cent cut in Gross Profit Tax for bingo clubs in Alastair Darling's Pre-Budget Report as "a positive step towards addressing bingo’s unfair tax regime".
The decision by Treasury to lower the GPT figure of 22%, announced in the 2009 Budget in April, to 20% follows an industry wide campaign calling for fairer tax for Bingo. The increase in GPT to 22% placed operators under considerable financial pressure, resulting in many club closures.
Paul Talboys, Chief Executive of The Bingo Association said: “We are pleased that Treasury has listened and digested the actual ‘facts’ of bingo tax and revised the GPT rate.
"However, the reasons for its delayed implementation until the next Budget is not apparent and will mean that the much needed benefit, particularly for smaller independent clubs, will not be felt until April 2010. I only hope that they can all make it."
He added: "The industry has fought hard for fair tax treatment and on this particular issue has been gratified by the support it has received from many leading MPs.
"We are grateful for their support of and faith in Bingo, a sentiment I know that is echoed by the bingo players across the UK. Industry and players alike will continue to fight for fair tax treatment of what remains one of the UK’s most popular leisure activities, but which is subject to a higher tax rate than that applied to other forms of gaming and betting.”
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