UK should consider reduced VAT rate for Northern Ireland tourism, MPs say

The UK government should consider setting a reduced rate of VAT for Northern Ireland’s tourism sector when the UK leaves the European Union and has the power to make its own VAT rules, according to a House of Commons select committee.

“The tourism industry in Northern Ireland has undoubtedly had some great successes in recent years, and we are optimistic for the future, notwithstanding the current political situation,” said Laurence Robertson, a Conservative member of Parliament and chair of the cross-party Northern Ireland Affairs Committee, in a March 20 statement.

Northern Ireland’s tourism sector is subject to a VAT rate that is more than twice that in the Republic of Ireland, the committee noted. Read more:

My news story for Tax Analysts, March 23(paywall)

Parliament: “Treasury must investigate if post-Brexit tax powers can boost tourism