Search
The Caterer

Failure to reduce slash tourism VAT a ‘missed opportunity'

21 March 2013 by
Failure to reduce slash tourism VAT a ‘missed opportunity'

Failure to reduce tourism VAT in yesterday's Budget announcement is a missed opportunity for the UK economy, an industry pressure group has said.

The Campaign for Reduced Tourism VAT, which is supported by more than 500 hospitality associations and businesses, is calling for a level playing field with the UK's tourism competitors in the European Union which apply VAT at reduced rates.

Accommodation is taxed just 7% in Germany and France compared to 20% in Britain.

Graham Wason, chair of the Campaign, said: "We are disappointed at the Government's failure to reduce the rate of VAT for the tourism sector, as almost every other country in Europe has done.

"The Government has accepted the argument that a lower rate of corporation tax makes the United Kingdom more competitive internationally. However, the Treasury's own economic model demonstrates that reducing VAT on tourism is a better way to generate growth for the economy than reducing corporation tax.

"We're missing out on tourists from growing markets like China and Russia because of the high VAT rate as well as our unfriendly visa regime. Cutting the VAT rate for tourism to 5% will allow us to compete effectively with our international rivals, boost growth and deliver the Olympic legacy.

"The government is squandering its golden opportunity to create the right business environment for the tourism sector and the whole economy."

http://www.catererandhotelkeeper.co.uk/Articles/20/3/2013/347897/beer-duty-escalator-scrapped-and-beer-duty-to-fall-by-1p-a-pint.htm" target="_blank" rel="noreferrer">
Beer duty escalator scrapped and beer duty to fall by 1p a pint >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.