My honourable friend the Exchequer Secretary to the Treasury (Sarah McCarthy-Fry) has made the following Written Ministerial Statement.
I am today publishing a consultation on the future of gaming machines tax policy, copies of which have been placed in the House Library.
Following reforms to gambling taxation over the past decade, five of the seven gambling tax regimes are now calculated on a gross profits basis. Gaming machines face a combination of amusement machine licence duty (AMLD), a licence fee paid before a gaming machine may be made available to play, and VAT at the standard rate on their takings.
Taxing on the basis of gross profits has been a success for other gambling regimes. The Government are considering whether to base the taxation of gaming machines on to the same basis and wish to hear from interested stakeholders.
The consultation period will run until 23 October to ensure stakeholders are given additional time to make representations. The consultation document is also available from the HM Treasury website.