The government’s decision to impose the controversial caravan tax is wrong and will damage the tourism industry in Wales, an MP has said.
Camarthenshire West and South Pembrokeshire MP Simon Hart, a member of the Conservative Party, has added his voice to the growing calls to abandon the reform, saying that the government “got it wrong”.
Holiday parks in Wales contribute £727 million to the national economy each year according to Visit Wales, and caravan park owners claim that the tax could cost as much as £16 million, the BBC reported.
Having been exempt from VAT since the 70s, chancellor George Osborne chose to reverse the policy in his April budget, adding 20% to the price of every static caravan, a move which the National Caravan Council says could result in the loss of more than 7,000 jobs when it comes into force in October.
“It looks good on a piece of paper if you’re sitting in the Treasury,” Mr Hart told the broadcaster.
“But if you’re trying to operate in the real world, out there trying to run a business, I think this will have a significant effect.”
The MP added the rapid speed at which the government intends to introduce the fiscal policy will make its consequences even more devastating.
A petition to scrap the caravan tax has been set up on the Prime Minister’s official website and so far it has attracted 10,667 signatories. To add your support to this campaign, click here before the deadline on Friday May 25th.
