The European Commission is now considering VAT proposals on all ferry and flight from the UK and Europe. Currently, all ferry and flight tickets in the European Union are VAT exempted, however the prices may rise up by a good 20% after the proposals are carried out.
The European commission Green paper "on the future of VAT" claims to be a more robust and efficient VAT system. The proposal also argues that cutting down the exemptions for the international passengers travelling by sea or air will ensure a level playing field. The proposal also promises to "fight against climate change" by helping reduce Carbon dioxide emissions. Considering the increasing global warming levels as a major threat to the environment the proposal has been kept forward. It is high time and preventive measures need to be taken for avoiding situations that could lead to hazardous outcomes in future.
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However, the proposal can possibly cripple the delicate industry still recovering from the recent Air Passenger Duty hikes. The Air passenger Duty has been increased by £60 to £85 on long haul flights and from £5 to £12 on short haul flights since February, 2007.This means travellers will need to be ready to shell out more money for their travel tickets. However you can checkout the latest Expedia deals to book your tickets at reasonable rates.
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