International edition
June 21, 2021

Says BBPA CEO

“Punitive new 20 % MGD will cost pubs an extra us$ 22.2 million next year”

(UK).- Commenting on the 20 % rate set for the new Machine Games Duty (MGD) tax being introduced next year, British Beer & Pub Association (BBPA) CEO Brigid Simmonds said: “This is a bitter blow. For this new tax to be revenue neutral it should not have been more than 15 %.”

It will cost the pub sector us$ 22.2 million in extra taxes next year,” Simmonds added.

Simmonds added that the government could also have frozen the existing Amusement Machine Licence Duty instead of raising it by inflation, “given we now have a very difficult transitional year for the pub and machine industries.”

“Fruit machines and quiz machines are an important part of the fabric of British pubs, a vital income stream, and valued by customers. For quiz based machines, this punitive new tax rate could see many of them disappear from pubs”, he assured.

MGD will replace Amusement Machine Licence Duty and VAT from 1st February 2013.
Annual AMLD licences are still being issued, but by mid-year only monthly payment plans will be accepted. Any AMLD licences running past 1st February 2013 will attract a refund.

The British Beer & Pub Association is the British leading organisation representing the brewing and pub sector. Its members account for 96 per cent of the beer brewed in the UK and own half of Britain’s 51,000 pubs.

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