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Taxation: Gambling

Volume 472: debated on Wednesday 27 February 2008

To ask the Chancellor of the Exchequer what representations he has received on the effective tax rates for (a) bingo and (b) other gaming products. (189824)

Treasury Ministers and officials receive representations from a wide range of organisations and individuals in the public and private sectors as part of the process of policy development and delivery. As was the case with previous administrations, it is not the Government’s practice to provide details of all such representations.

To ask the Chancellor of the Exchequer (1) what information his Department requests from the gaming industry when calculating effective tax rates for gaming products; (189741)

(2) pursuant to the answer of 18 February 2008, Official Report, column 369W, on taxation: gambling, what method his Department uses to calculate the average effective rates of taxation on (a) bingo, (b) casinos, (c) gaming machines and (d) betting.

Effective tax rates for gambling products are calculated as: total tax divided by the tax base. Total tax is equal to duty receipts, plus net VAT where applicable (bingo and gaming machines), while the tax base is gross profits (stakes minus winnings i.e. net stakes).

Most of the information required to make these calculations is from statutory returns to HMRC (supported by data collected by the Gambling Commission). Any further information required is obtained during consultations, from reports commissioned by the industry or from industry representations (in which case we may ask for further information or clarification).