Bookies Raise Fears of 2% GPT Increase
26th March, 2009
Bookies have asked for the Government to” go easy on them” in the upcoming Budget for 2009 according to The Daily Telegraph.
Reports suggest the government may be planning on increasing the Gross Profit Tax that bookmakers pay from 15% to 17% along with other regulations.
However major bookmakers like Ladbrokes and William hill, have stressed to the Minister of Sport, Gerry Sutcliffe, such a move may lead to them relocating parts of their businesses.
Both Ralph Topping, CEO of William Hill, and Chris Bell, CEO of Ladbrokes, attended a meeting with Mr Sutcliffe where they hinted that, “any regressive move from the government could force them to relocate parts of their business offshore”.
Currently bookies pay £920million in taxes, including corporation tax, gross profits tax (GPT) and VAT. While the industry itself employees around 40,000 people and supports a further 60,000 people.
Fears rose further when an analysis from London Economics found that a 2% rise in GPT could lead to the closure of 845 betting shops and see the loss of 3,190 full time jobs,
By Rommon
