The MP for Maldon’s comments come despite the fact that the EU already allows members to cut the tax for some tourism related activities with many already choosing to do so.
“If we wanted, for example, to abolish VAT on accommodation or attractions, we could now do so. We couldn’t have done when we were in the European Union,” Whittingdale said at last week’s British Hospitality Association (BHA) summit in London,
The Campaign for Reduced Tourism VAT has said that the EU allows member states to apply reduced VAT rates to “labour intensive services” such as tourism as a means to reduce unemployment.
Nick Varney, chairman of the BHA and chief executive of Merlin Entertainments, who said: “Tourism and leisure can continue to grow under Brexit. Initially a weaker pound will encourage visitors and also exports will flourish.
“We should seize the moment and lock in that competitive advantage with a permanent cut to VAT for accommodation and attractions, and possibly in the future also for restaurants.”