Britain rules out tourism VAT cuts

London: British Tourism Minister John Penrose ruled out cuts in value-added tax to encourage more tourists to visit Britain, saying narrowing the budget deficit is the priority.

Outlining the government’s tourism strategy, Penrose said Chancellor of the Exchequer George Osborne’s March 23 budget would not contain any concessions for the industry, which has lobbied for tax breaks to boost its revenue. Osborne raised VAT, a sales levy on goods and services, to 20% from 17.5% in January.

British Prime Minister David Cameron’s government is seeking to encourage more visitors to boost growth, as well as urging Britons to vacation at home. The wedding of Prince William in April and Queen Elizabeth II’s Diamond Jubilee and the London Olympic Games next year are being promoted to draw tourists.