BBPA slams Machine Games Duty

01/06/2011

Gurjit Degun of the Morning Advertiser writes today that  The British Beer & Pub Association (BBPA) has branded the Government’s proposals to introduce a machine games duty (MGD) in place of VAT for machines as “misguided”.

It comes as the Treasury launched a consultation into the new tax. It proposes that MGD will be charged on the net takings from gaming machines and, where it is payable, it will replace VAT and amusement machine licence duty.

There are plans for a standard rate and a lower rate (based on stake/prize levels), and the

BBPA is calling for category C machines (AWPs) to be taxed at the lower rate.

The BBPA said that without a fair deal for pub machines, many licensees will not be able to afford to have them, and will lose what has long been a traditional part of their income.

Pubs will have to register online to comply with Treasury rules under the new tax.

BBPA chief executive Brigid Simmonds said: “Many pubs could lose vital income. For machine makers, this could be the last nail in the coffin.”

The changes are set to be brought in via the Finance Bill 2012 and come into effect in 2013. The consultation closes on 26 July. Have your say at: www.hm-treasury.gov.uk/consult_machine_games_duty.htm

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