MGD passed but seasides get a concession

07/12/2011

Machine Games Duty (MGD) will replace AMLD it has been confirmed yesterday.

It is the news that UK amusement and gaming arcade operators have dreaded. MGD will be set at the time of the Budget, Treasury Secretary Chloe Smith confirmed.

But in one concession to the industry, MGD will only apply to cash prize machines – meaning that many traditional arcade games will not face the new tax as first feared.

Derek Petrie, president of trade association BACTA, welcomed Ms Smith’s changes to the original plan.

“Two weeks ago we met with Treasury minister Chloe Smith, who offered us a chink of light on these tax changes,” he said.

“Now we can see that some progress has been made, but we have some way to go before we can be confident that the threat to the seaside has been addressed.”

But Mr Petrie added: “The British amusement industry is now at a critical juncture. We face a more uncertain and fragile business environment and economic outlook than ever before. More than 280 arcades have closed over the last eighteen months, many of them pillars of our seaside resorts. The rates that are set at the Budget and how we address the issue regarding irrecoverable VAT remain critical.”

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