Skip to main content

Tory minister hints at post-Brexit tourism VAT cut

Tax
TTG Staff
4 July 2016

Culture secretary John Whittingdale has claimed that leaving the European Union could lead to cut in the amount of VAT applied to tourism services.

Alton Towers Rapids

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.