Rank, gaming group has reacted harshly on increased taxes and said government showed its prejudice against bingo.

Mecca chain of Rank has been losing business due to ban on smoking and rising taxes on bingo. Players have to face 22% tax on whatever they pay in bingo. Bookies tolerate gross profits tax of 15% on betting.

But punters' face no tax for their stakes as well as winnings.

Chief executive of Rank, Ian Burke said, "The Treasury does seem to be trying to recoup what it lost through removing VAT."

According to industry connoisseurs the recent tax hike could result into closure of additional 100 bingo halls.

In spite of hiked tax on bingo company posted improved results for the first half of the year. Rank's profits stood at £25 million on proceeds of £266 million, up 40%.

On the other hand, company's debt plunged from £226 million to £208 million.

However, proceeds at Mecca dropped a little to settle at £116 million.

Rank's shares soared 11.5% to close at 77¾p.