Pubs must not be penalised under new gaming machine duty system, says BBPA

08-Dec-2011 - Last updated on 19-Mar-2024 at 13:31 GMT

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The BBPA says it is crucial that Machine Gaming Duty rates are set at a reasonable and sensible level in the upcoming Budget

Pub operators are awaiting a ‘crucial’ decision from HM Revenue & Customs over the rate of tax applied on gaming machines, following the announcement that they will be split into two bands.

A reduced rate will apply only to Category D pub gaming machines, leaving Category C machines in the higher band. No decision has yet been announced on the two rates to be applied, but the new system is due to come into effect in February 2013.

“With Category C pub gaming machines in the higher band, the rate of tax applied will be all the more crucial,” said Brigid Simmonds of the British Beer and Pub Association (BBPA). “The Government must recognise that the rate must not penalise pubs.

“Our calculations show that the annual cost per pub of implementing the change is around £200. The tax rate must take this into account. There must be no additional net costs as a result of the new system.”

The BBPA and DCMS

The arrival of the new tax system also makes the timing and outcome of the recent announcement of the review of stakes and prizes of pub gaming machines all the more important. This ‘triennial review’ was the key agenda item at a meeting earlier this week of the BBPA Amusement & Entertainments Panel at BBPA headquarters, attended by officials from the Department of Culture, Media & sport (DCMS) and the Gambling Commission.

Last week the BBPA joined forces with the British Amusement Catering Trade Association, Business In Sport and Leisure (BISL) and other associations to write to DCMS taking up the Minister’s offer to consider how the review process could be completed sooner, as DCMS are currently suggesting it could take 18 months.

Earlier in the year, BigHospitality reported that pub operators are facing new tax proposals for gaming machines, which could risk hiking up operation prices to prohibitive levels.

DCMS has invited a number of trade bodies to meet at BBPA headquarters on 19 December to discuss the options going forward.