Tourism VAT cut option for an independent Scotland

QUESTIONS have been raised as to whether an independent Scotland would reduce Value Added Tax on tourism services. A Cut Tourism VAT campaign has joined the independence debate by asking if the tourism sector would benefit from a cut in VAT, after the UK government refused to do so.

If it went its separate way, the Scottish tourism industry could benefit from a reduction in VAT from 20 percent to five percent, potentially taking business away from England, Wales and Northern Ireland.

Graham Wason, chairman of the campaign for Reduced Tourism VAT added: “If Scotland opts for independence and subsequently cuts VAT on tourism, it would benefit significantly at the expense of the rest of the UK.  It would also attract more visitors from abroad, so earning export revenue and improving its balance of payments. In these circumstances, the mistake by the rest of the UK in not cutting tourism VAT would be exposed.”

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