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Independent Travellers Unlikely to be Affected by VAT Rise

Thursday 23rd December 2010

The Telegraph reports that the VAT rise to 20% won’t stop Brits travelling

Tour operators have said that British holidaymakers are determined to carry on travelling - and are unlikely to have to pay a lot more to do so despite this week’s rise in VAT from 17.5 per cent to 20 per cent. Although those booking a package holiday can expect slightly increased costs, independent travellers will not be affected as flights are exempt from the VAT rise, as are bookings made with hotels abroad.

Derek Moore, chairman of the Association of Independent Tour Operators (AITO), criticised the VAT increase, which follows November’s rise in Air Passenger Duty, but said the impact on holiday prices would be small. "But I don’t think it will stop people travelling. After all, an added 2.5 per cent on a £500 holiday is only £12.50."

Read more on the Telegraph website...