Government dismisses industry VAT and MGD reduction request

VAT MGD reduction request dismissed
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The government has dismissed a request from Bacta for the amusements industry to be included in the temporary 5 percent VAT rate for tourist businesses.


Last week, the trade association received an email from Exchequer secretary Kemi Badenoch dismissing the industry’s need to share the reduced tax rate enjoyed by other tourism businesses. The dismissal was delivered in a double whammy; Bacta’s call for a temporary reduction on MGD was also waved away.

A step backwards in the industry’s plans for additional central support, the trade association has now called on all members, many of whom are angry at the government’s dismissive approach, to write to their MPs to explain the dire need for further assistance.

“My seaside amusement arcades are just as much a part of the tourism industry as theme parks or other tourist attractions,” read one letter. “Like them we need help to get us through the winter. We have only just opened to the public and will in any case only see reduced numbers of customers for a truncated season. Coupled with the costs of implementing Covid-19 secure measures this means I will seriously struggle to make it through to next Easter. The Chancellor acknowledged these challenges in his statement but failed to include one important sector for relief, namely seaside arcades.”

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