PLANS to abolish a tax on one of the region's most popular pastimes have moved a step closer.

The Government has published a consultation paper setting out proposals to reform the tax on bingo.

It follows Chancellor Gordon Brown's announcement in his April Budget that the duty would be scrapped.

The move aims to do for the bingo industry what getting rid of the betting tax did for bookmakers - create a boom time.

Under present legislation, 10p in every pound staked by players and a further 11p in each pound put up as bingo prize money goes straight to the Treasury.

The Chancellor wants to scrap this and replace it with an extra tax on the bingo companies' profits. It should mean a huge increase in the size of jackpots and prizes.

The move has been welcomed in the bingo heartland of the North-East, where the game is played by one in seven of the population. Punters at Testo's bingo hall in Consett, County Durham, were unanimously in favour of the changes. June Campbell, 66, of Consett, said: "I don't think it is fair that we pay that much of our money straight to the Government."

Edna Pattinson, 71, of nearby Blackhill, said: "It is a very good idea if it means us getting extra money in the prize pot."

Both women said the proposed reforms in the law would encourage them to play more often.

Announcing the consultation document, economic secretary to the Treasury John Healey said: "By abolishing the tax on bingo stakes, we can boost the bingo industry, give players a better deal and strengthen the vital role played by bingo clubs within our local communities.

"In the two years after 1979, bingo duty was doubled. In the following 20 years, the number of bingo clubs in this country halved."

There is no duty on bingo played in social clubs or members' clubs, and they are not affected by these proposals.

Responses to the consultation document can be submitted up to October 31. Further announcements will be made by the Treasury in the 2002 Pre-Budget Report and the reforms could be in place by next year.