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Written question asked by Ian Liddell-Grainger (Conservative) on Wednesday, 25 November 2009, in the House of Commons. It was due for an answer on Monday, 30 November 2009. It was answered by Stephen Timms (Labour) on Tuesday, 1 December 2009 on behalf of the Treasury.


VAT

Question
To ask the Chancellor of the Exchequer whether his Department has made an assessment of the likely effect on the economy of applying a reduced rate of value added tax to visitor attractions, accommodation and restaurants.
Answer

No such assessment has been made. VAT is a broad-based tax on consumer expenditure and reliefs from it have always been strictly limited. Where reduced rates are available, these are applied only where they provide the most well-targeted and cost-effective support for the Government's policy objectives, compared to other measures.


Secondary information

Type
Written question
Reference
501 c605W; 303122
Session
2009-10
Subjects
VAT Tourism
Link
View this Written question on www.publications.parliament.uk