Under the new system, due to come into effect in February 2013, there will be only two rates of MGD; the reduced rate applying only to Category ‘D’ machines leaving Category ‘C’ machines in the higher band. No decision has yet been announced on the two rates to be applied.
Earlier this year, the BBPA branded the Government’s proposals to introduce an MGD in place of VAT for machines as “misguided”.
It 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.
The arrival of the new tax system comes following the recent announcement of a review of stakes and prizes of amusement machines, set to take place on 19 December.
Last week the BBPA joined forces with the British Amusement Catering Trade Association (BACTA) and Business in Sport and Leisure (BISL), along with other associations to write to the Department for Culture, Media and Sport (DCMS) taking up minister John Penrose’s offer to consider how the review process could be completed sooner than the 18 months currently suggested by DCMS.
DCMS has invited a number of trade bodies to meet at BBPA headquarters to discuss the options going forward.
BBPA chief executive Brigid Simmonds said: “With category C machines in the higher band, the rate of tax applied will be all the more crucial.
“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.”