Treasury vows to fight EC VAT rise

Treasury has pledged to change European Commission proposals to slap VAT on
flights after a flood of complaints from Travel Weekly readers.

Government department – headed by Chancellor Gordon Brown – was inundated with
faxed copies of last week’s front page demanding it vetoes EC proposals which
could add up to £25 per person on the price of a European package holiday.

spokesman for the Treasury said: “We will continue to listen to the concerns of
the travel industry on these proposals. The Treasury will not accept any
proposals that will increase the cost for UK holidaymakers. We are confident we
can win the argument.”

believed a meeting between ABTA, the European Tour Operators Association and
Customs and Excise – representing the Government – is set to take place before
the EU’s finance ministers meet to discuss the proposals. 

ETOA executive director Tom Jenkins has formed an alliance of trade and tourism
bodies – including ABTA – to fight the directive, which he fears could cost
inbound UK tourism 5,000 jobs and £5 billion in lost revenue.



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