A WEST Wales MP has backed a national campaign that calls for a cut on tourism VAT from the current 20% rate to 5%. The call has been made to Chancellor George Osborne.
The ‘Cut Tourism VAT’ campaign is being run by a coalition of hotels, self catering caravan sites, bed and breakfast providers and visitor attractions. They cite 25 of the 28 countries in the European Union who already discount VAT on tourism. They claim that reducing VAT on tourism would make the UK more competitive with other destinations in Europe and would also increase the affordability, and therefore attractiveness, of regional tourism hotspots for both businesses and visitors alike.
Graham Wason, Chairman of ‘Cut Tourism VAT’, said: “International competition for tourism is increasing while the UK’s share of the global tourism market is declining, and I am delighted that Simon Hart MP is supporting our call for an urgent cut in tourism VAT which would boost the tourism industry and the wider economy in Carmarthen West and South Pembrokeshire.”
Backing the campaign, Simon Hart MP said: “A reduction of VAT on tourism from 20% to 5% would make a huge difference to Carmarthen West and South Pembrokeshire resulting in extra jobs and an additional £7.6m to the local economy. That’s why I’m backing the campaign and I’m asking the Chancellor of the Exchequer to give tourism in Wales a well-deserved boost.”
However, Plaid AM for Wales Mid and West, Simon Thomas said: “This recent statement shows the futility of voting Tory in Pembrokeshire when they cannot even get a Conservative Chancellor to agree to this policy. It demonstrates why we need a strong Plaid Cymru team of MPs from Wales after May 7th so Wales cannot be ignored. With a strong Plaid Cymru team of MPs including John Osmond and Councillor Elwyn Williams, Pembrokeshire and Wales cannot be ignored.
“The tourism industry has asked consistently for a cut in VAT in order to secure a boost in Wales, and Britain indeed, in terms of international tourism. I called on the First Minister last year to make representations with the Coalition Government for a VAT cut for tourist businesses.”
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