Industry giant Gauselmann is urging the Chancellor to cut MGD to 5 percent and start to rebuild the industry supply chain.
Gauselmann UK, whose market-leading brands comprising Regal Gaming and Leisure, Blueprint, Praesepe and GeWeTe, together employ some 2,400 people, has outlined a powerful argument to government, demonstrating how a cut in Machine Games Duty to 5 percent will help kickstart the AGC, bingo, FEC and pub sectors at the same time as encouraging substantial levels of continued international investment in UK plc.
In a letter sent to The Rt Hon Rishi Sunak MP, Chancellor of the Exchequer, Sascha Blodau, UK General Manager, Gauselmann Group, explained that MGD was the machine sector’s equivalent of VAT, as a consequence requesting that the terms of the temporary VAT reduction be extended to include it.
He stated: “The amusement machine industry, which is a key contributor to tourism and hospitality, would benefit instead from a cut in Machine Games Duty. This move would represent a significant boost to the amusement industry and would validate how much its contributions mean to our economy. It would also underline the role it should play in the economic recovery, just as the VAT cut will for other parts of the tourism industry.”
Gauselmann’s arguments regarding MGD apply to all sectors. A reduction in the rate from 20 percent to 5 percent would enable operators to invest in new machines thereby supporting the supply chain which stretches from components manufacturers through to logistics companies. For consumer facing venues such as AGCs and FECs it would accelerate investment programmes, in the process providing work for local businesses and helping to rejuvenate the communities and high streets where the venues are located. In relation to pubs and bingo clubs, two of the hardest hit industry verticals, a reduction in MGD would provide suppliers with the flexibility to be able to work with their customers to help overcome difficult trading conditions.
Concluding his letter Sascha Blodau added: “The recovery process will, in part, rely on attracting new and innovative enterprises to our high streets and tourist destinations to attract and retain customers at a time when consumer confidence has been significantly undermined by both economic and health concerns.
“We hope that we will now be able to take forward our further investment plans, but we would like to urge you to consider a cut in Machine Games Duty when considering the economic recovery for the sectors that have been hit the hardest. Fundamentally, the Gauselmann Group remains committed to its position in the UK – and we will do our part to continue to contribute to local economies across the country, to support jobs and to generate tax revenues.”