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Latest BACTA News
Budget Update 2012
Derek Petrie, President, BACTA said:
"The end for many amusement arcades is nigh. Despite hundreds of small business owners warning politicians for 18 months now of the danger that Machine Games Duty would present to our industry, the Chancellor has failed to listen in today's Budget. The rates that the Minister has proposed for his new tax on arcades are simply too high and will result in another, cruel wave of closures on the seaside.
"Not only has the Government failed to heed our warning on the impact of new, damaging rates of Machine Games Duty, but they've also neglected to fix a glaring error in the VAT system. By failing to offset irrecoverable VAT, some small arcade businesses will face a huge additional tax bill, with no way to claw it back.
"Analysis by Ernst and Young has clearly shown that tax rates of 15% and 3% are the most that any owner can bear anything more, and the losers from this new regime face fresh tax bills in the hundreds of thousands of pounds. Arcade owners are doing everything they possibly can to grow their businesses and keep them thriving for seaside resorts.
"It is inconceivable that a Government supposedly committed to small business and to tourism has made this decision. 300 arcades and 1,000 jobs have already gone, now, more will follow. This Government has refused to listen and by increasing the aggregate tax bill to an already struggling sector will cause hardship to thousands of vulnerable people. We call on every Member of Parliament who cares about British small business, employment, manufacturing and tourism to oppose these ill thought out and destructive measures."
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