Following reports of a drop in Mecca Bingo's Scottish revenues and the recent closure of three independent bingo clubs last week in Scotland, the Bingo Association turned to the government for financial help. According to the Association officials, a 2-3 year exemption from VAT on bingo clubs' participation fees will allow local bingo operators to better adapt to Scotland's smoking ban.
The association reportedly maintains that such a tax break would allow Scotland's 86 bingo clubs to save as much as £10 million (~$18,480,000) on a yearly-basis. According to Sir Peter Fry, Bingo Association's Chairman, the proposed tax exemption would give bingo halls a reasonable period of adjustment and help prevent a possible collapse of the industry.
Nevertheless, a government official was reported as saying that there would be no change in tax regime before the next budget talks, and that when the time does come to discuss this issue, the authorities could choose another way to help the ailing bingo industry.
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