A discussion on Northern Ireland tourism taxes assured by the Government as part of its Westminster project with the DUP has been introduced by the Chancellor.
The Treasury’s “call for evidence” looks for views on the prospective future of Air Passenger Duty and tourism VAT.
APD needs passengers for short haul flights flying in or out of Northern Ireland to pay approximately £13.
The critics of the duty assert that it is creating a drop in the flight numbers in Northern Ireland, with passengers instead choosing to utilize Dublin airport, wherein a similar duty was axed in 2014.
Side by side, many in the hospitality sector have started campaigning for a drop in the 20% VAT rate related to tourism sector, declaring it also places competitive drawback on the region with the Irish Republic, where the rate is 9%.
Critics of the tax cuts dispute the resultant cuts to the Northern Ireland’s block grant, to counterbalance the shortfalls, would have an uneven effects on local public services.
The consultation states: “The Government wants to support the economy in Northern Ireland, and to help build on the growing success of the tourism industry there.
“Concerns have been raised about the impact of VAT and APD on tourism in the UK, and particularly in Northern Ireland.
“However, views on the potential costs and benefits of any changes are divided.
“The Government is therefore seeking evidence that demonstrates the significance of any impacts that VAT and/or APD have on tourism, or that helps show how VAT and/or APD might be used to support the growing success of the sector in Northern Ireland.”
Tags: northern ireland
