HC Deb 11 December 1997 vol 302 c644W
Mr. Pendry

To ask the Chancellor of the Exchequer how many representations have been made to Treasury Ministers on the subject of insurance premium tax for the travel industry since the last General Election. [19666]

Dawn Primarolo

Treasury Ministers have received a number of representations on this issue, including six Parliamentary Questions excluding this and the other recent questions raised by my hon. Friend the Member for Stalybridge and Hyde (Mr. Pendry) and about 200 letters from Members of this House.

Mr. Pendry

To ask the Chancellor of the Exchequer what representations he has received about the inability to value-shift on non-EU holidays sold by tour operators or travel agents. [19662]

Dawn Primarolo

I have received a number of representations on this issue. Value-shifting by travel agents and tour operators does take place on non-EU holidays but since such holidays are not subject to VAT there has never been any question of a VAT motive or a VAT effect in this area. On grounds of simplicity, efficiency and effectiveness it was nevertheless considered right that insurance sold with all holidays should be made subject to the higher rate of insurance premium tax.

Mr. Pendry

To ask the Chancellor of the Exchequer what is the Government's current position and timetable on their review of the differential between the rate of insurance premium tax currently levied for policies sold by tour operators and travel agents and for similar travel insurance policies sold through building societies, BUPA and other retailers. [19660]

Dawn Primarolo

I have asked officials in Customs and Excise to monitor the effect of the introduction of the higher rate of insurance premium tax. It is too early yet to draw any conclusions from this monitoring process.