VAT Rates On Tourism

EDM number 1269 in 1994-95, proposed by Alan Meale on 20/06/1995.

That this House is concerned about the findings of a recent examination by the company Touche Ross of the impact that different rates of VAT applied to tourism throughout the Euro pean Union have on the competitiveness of the United Kingdom's tourism industry; was alarmed by its results which showed that the United Kingdom applies the highest rate of VAT to tourism goods and services in the EU with the exception of Denmark and that tourism is price-sensitive and the United Kingdom is perceived as an expensive destination; and calls upon Her Majesty's Government to examine the findings of this study which argues that if VAT on tourism in Britain were reduced benefits would be passed on directly to customers via cheaper holidays and that in the first four years a reduction of VAT rates to eight per cent. for tourism accommodation alone would create up to 38,000 new jobs, reduce the balance of payments deficit on travel and tourism by nearly ú3 billion and generate an extra ú419 million in Treasury revenue.

This motion has been signed by a total of 37 MPs.