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Thursday, May 24 2012

Reduce VAT to boost tourism

VAT could well go up as part of the coalition government’s search for loads of cash to plug the deficit.

But if the standard rate is to go up, perhaps to 20 per cent, the new Treasury team should think more laterally.

Although there is a lower five per cent rate, for example, on domestic fuel bills, it is not widely applied.

Wouldn’t it send a great signal to our successful tourism industry if VAT were reduced on hotel rooms? That’s what they do in France and it works for tourism, attracting more visitors and creating jobs.

Tourism was the great unmentioned in the party manifestoes, but in Kent alone, it generates £2.6bn and employs 50,000. It is a great UK industry, a huge money-earner and at the forefront of our image as a nation.

It’s high time tourism was given a break - and lower VAT would be a great way of doing it.

Friday, May 14 2010

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