VAT Tax Hits UK Bingo Halls

Live bingo halls in the UK could see a reduction in profits after the new Value Added Tax (VAT) goes into effect this year. As of January 4th 2011 the VAT increased from 17.5 %to 20%. Thanks to the additional tax having fun will now be even more expensive. While the increase sounds small for some people it could be enough to curtail their attendance at live bingo games. The new VAT tax increase has received extensive coverage from bingo news and bingo review websites.

Obviously bingo hall operators are not pleased with the increase. Some players have already indicated they will reduce their attendance at live bingo games. Jackie Jakes is a bingo fanatic and told the Mirror newspaper, “I use to play live bingo at least twice a week and sometimes more. I have had to cut down to one night per week for the last six months.” The increase in the VAT tax will also make alcohol, petrol and clothes more expensive. Bingo has always been seen as an inexpensive game where players can relax with a drink and socialize with friends and the increase in prices is sure to cause many players to cut back on their attendance at games.

According to several bingo sites the increase comes at a time when live bingo halls are just starting to recover from the effects of the smoking ban imposed in 2006. The increased popularity of internet bingo among younger players has caused many to start playing the live version of the game at local bingo halls. Many bingo news sites have reported that instead of harming live bingo internet bingo has created a whole new generation of younger bingo fans.

In addition to hurting bingo halls economic experts say the increase in VAT taxes will cost jobs and cut consumer spending. The increase means that what now costs £100 ($154.77USD) will be £2.13 ($3.29 USD) more expensive, a significant increase for many. Bingo news sites have pointed out that the increase will seriously affect pensioners on fixed incomes. Pensioners account for a large number of live bingo players and many will be forced to cut back or stop playing altogether. The increase will push the price of petrol to record highs and low income families will be the most affected. At present no figures are available to determine the damage to bingo halls by the tax increase but bingo news websites are watching the developments closely.

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