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Taxation: VAT

House of Lords written question – answered on 27th June 2012.

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Photo of Lord Wigley Lord Wigley Plaid Cymru

To ask Her Majesty's Government what discussions they have had with the Scottish Government about the possibility of a lower level of value added tax being applied to the tourism industry in Scotland.

Photo of Lord Wallace of Tankerness Lord Wallace of Tankerness Lords Spokesperson (Attorney General's Office), Lords Spokesperson (Wales Office), The Advocate-General for Scotland, Lords Spokesperson (Scotland Office)

Under EU VAT law, it is not possible to apply VAT relief on a regional basis. Any reliefs for tourism would have to be applied UK-wide and would involve a cost of at least £9 billion a year. However, the noble Lord will be aware that we have announced, subject to consultation, a reduced rate for cable transportation. This relief will apply to the ski lifts operated by Scottish resorts.

In addition to the Scottish Government's work in support of the Scottish tourism industry, the industry will benefit from the Government's strategy for tourism which was published by the Department for Culture, Media and Sport in March 2011.

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