Government makes u-turn on caravan tax plans

The British leisure industry is celebrating following the government’s decision to scrap plans to introduce a 20 percent tax on the sale of static and larger touring caravans.

Thousands of caravan owners, organisations and tourist businesses signed an online petition opposing the move, which was scheduled to come into force in October this year.

As a result of the strong protest, the government has decided that the VAT introduction will be reduced to five percent and will not be implemented until April 2013.

The announcement has been met with celebration and support throughout the industry, including from several MPs representing constituencies that rely heavily on tourism income from caravanners.

“The Government has finally listened to the volume of criticism of this chaotic policy,” Kingston Upon Hull East MP Karl Turner remarked to his local ITV news team.

Andrew Turner MP told the Isle of Wight County Press: “I am glad that the government has listened to the consultation. The proposal to introduce 20 per cent VAT on static caravans would clearly have not only had an effect on the industry, but also on the economy of areas where they are used for tourism such as the Island.”

Meanwhile David Davis, Haltemprice and Howden’s Conservative MP, described the decision as ‘common sense’.

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