27/04/2012

Static Caravan Tax Will Hit Caravan Industry Hard

SDLP South Down MP Margaret Ritchie has tabled an Early Day Motion in the House of Commons criticising the imposition of VAT on Static Caravans, calling on the government to consider the impact of the proposal on the caravan industry.

Ms Ritchie was speaking following a series of measures announced by the Chancellor in his Budget on 21 March, one of which will mean that static caravans are to be made subject to the standard rate of VAT.

Ms Ritchie said: "The caravan industry has already felt the severe effects of the recession with it losing more than 1,500 job losses in 2008. The Chancellor’s decision to apply the standard rate of VAT to static caravans will increase the pressure already being felt by that industry.

"A VAT rate on static caravans will affect not only caravan parks across Northern Ireland, but it could also have an adverse effect on surrounding businesses who rely on these parks and the revenue they bring in.

"Caravanning remains a very popular way for families to enjoy their free time in some of Northern Ireland’s most beautiful coastal and rural areas, particularly in my own constituency of South Down. It is vital that those wishing to purchase static caravans are not put off from doing so by the imposition of VAT on the purchase price."

(CD)

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