§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer if he will delay the introduction of VAT on tour operators total margin until he has reviewed the equity of the exemption of operators with an in-house travel capacity; and if he will make a statement. [24760]
§ Mr. Heathcoat-Amory[holding answer 17 May 1995]: No. The proposed changes which bring the VAT scheme for tour operators into line with a judgment of the European Court of Justice were announced by Customs and Excise last October, over 14 months before the implementation date of 1 January 1996. While I recognise that some concern has been expressed about possible distortions of competition, there are differing views within the industry and this is one of several complex issues which does not relate solely to the 1 January 1996 changes and which can be addressed only in the longer term and in full consultation with industry representatives. It will therefore be included in a wide-ranging review of the tour operators' margin scheme which Customs proposes to begin next month.
I am satisfied that, in the meantime, the changes must be made, and a Treasury order will be laid before the House.
§ Mr. David AtkinsonTo ask the Chancellor of the Exchequer what representations he has received from(a) the Association of Independent Tour Operators and (b) other small companies in the outbound travel industry to his VAT changes to tour operators margin scheme; and if he will make a statement. [25590]
§ Mr. Heathcoat-AmoryThe Association of Independent Tour Operators and others have raised several concerns about the proposed changes to the tour operators' margin scheme. The changes, which were announced by Customs and Excise last October and will be implemented on 1 January 1996, bring the scheme into line with a judgment of the European Court of Justice. Many, but not all, wish to see the implementation of the changes delayed.
Some concern has been expressed about possible distortions of competition. This is one of several complex issues connected with the scheme which do not solely relate to the 1 January 1996 changes and which can be addressed only in the longer term and in full consultation with industry representatives. Customs propose to begin just such a wide-ranging review of the scheme next month.
715WThere will also be further contacts between Customs and Excise and the Association of Independent Tour Operators to discuss the position, but I am satisfied that the changes must be made, and a Treasury order will be laid before the House.