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Budget 2014: Tobacco tax raised; bingo duty cut

Lucinda Beeman
Written By:
Lucinda Beeman
Posted:
Updated:
19/03/2014

Chancellor George Osborne has raised taxes on tobacco but cut the duty on bingo halls in today’s Budget.

Osborne extended the tax escalator on tobacco, which ensures that the duty on cigarettes and their ilk increases by 2 per cent above inflation every year, through the end of the decade.

He said: “This escalator was due to end next year – but there are no sound health reasons to end it, so it will be extended for the rest of the next Parliament.”

According to George Charles, financial expert and spokesperson at www.VoucherCodesPro.co.uk, this comes as no surprise.

He said: “We have seen a massive increase of 248 per cent in online searches for e-cigarettes over the past year, which seems to imply that rises in tobacco prices has had a somewhat positive impact in the process towards a healthier and smoke-free Britain.”

According to Charles there will never be a dramatic decrease in tobacco tax as long as the Government has a healthier nation in its sights.

Elsewhere, punters face mix results from Budget 2014. While duties on fixed odds betting terminals rise to 25 per cent and the horserace betting levy will be extended to bookmakers based offshore, bingo halls received a boon.

Currently taxed at 20 per cent, Osborne halved the duty to 10 per cent.

“While betting machines have grown,” Osborne explained, “the number of bingo halls has plummeted by three quarters over the last thirty years. Bingo duty will be halved to 10 per cent to protect jobs and protect communities.”

Charles, said: “This is really good for those who enjoy a trip down to the bingo hall once in a while. Tory MP Robert Halfon made it clear that he wanted the current 20% gross profits tax on bingo reduced to 15% and over 300,000 people signed a petition backing him on the issue- so this will surely be music to their ears!”

He continued: “In the last few years, bingo halls have taken a battering, with failure to draw in younger customers, a smoking ban, the rise in popularity of online bingo, and the bingo tax all taking their toll. Hopefully, this news will be able to breathe some life back into the struggling industry.”


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