Ulster Unionist MEP, Jim Nicholson has welcomed the news that the Treasury has revised its plans to impose 20% VAT on static caravans following opposition from businesses and politicians from across the UK.
In a statement Jim said: “Following the budget in March I wrote to the Chancellor, George Osborne, to make him aware of concerns that his plan to impose VAT on static caravans would damage our tourism sector and threaten local businesses and jobs.
Tourism is of great importance to the Northern Ireland economy and the original plan to impose VAT at a rate of 20% would have hit caravan sales and the sector hard, especially when you consider the price differential that would have existed between static caravans in Northern Ireland and the Republic of Ireland.
The news that the Treasury has listened to the outcry from businesses and elected representatives from right across the UK - and will now as a result introduce a 5% rate of VAT next April - is to be welcomed. Many would no doubt have preferred to have zero tax levied on static caravans but at least a compromise has now been reached which should minimise the impact on our tourism sector and wider economy as a whole.”