Sir, – Let us not get overly excited about the retention of a 9 per cent VAT rate for some enterprises in the tourism industry (“Lower VAT to stay until end of 2013”, Home News, May 10th). VAT on fuel for the coach touring sector remains at 23 per cent.
A litre of diesel has risen 15 per cent since this Government took over. This costs jobs and revenue across the industry as visitors are lost to the UK, where the tax charged on fuel for touring is far less.
The department has linked the 9 per cent VAT rate for hotels and restaurants with “an increase in employment in the sector”, and as “a further example of the importance which the Government attaches to the tourism industry”.
But this spin is at odds with its treatment of the sector that brings visitors from the hotels to the restaurants. – Yours, etc,