New Fruit Machine Tax

A new proposed tax on Fruit Machines looks like the final nail in the coffin for UK pubs. The British Beer & Pub Association (BBPA) has appealed to government minister Bob Neill to intervene over proposed new tax changes in respect to fruit machines in UK pubs.

The trade association predicts that the implementation of the new proposed banding system for machine games duty (MGD), could cost the trade £11.9m a year or £200 per pub in compliance costs. The BBPA is pressing Bob Neill for the full financial impact on the pub sector to be assessed before any decisions on the new regime are made by Treasury ministers.

The Government is proposing that MGD be charged on the net takings from gaming machines and, where it is payable, replace VAT and amusement machine licence duty. The changes are set to be introduced via the Finance Bill 2012 and come into effect in 2013.

If the new tax goes ahead you can expect to see payouts reduced as publicans and AWP manufacturers attempt to claw back ever shrinking profit margins. Sadly this will be good news for online fruit machine operators who will not have to pay the new tax.

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