Then Northern Ireland Affairs Committee has called on the Government to investigate if powers over VAT after the UK has left the EU can be used to boost the tourism sector in the country.

Currently Northern Ireland is subject to a VAT rate of 20%, more than twice that in the Republic of Ireland with whom it shares a land border – uniquely in the UK.

The tourism industry in Great Britain does not face the same form of competition and the Government must now consider if a one-size-fits-all policy is any longer appropriate once EU rules on VAT no longer apply.

Last year, 2.5 million visitors drove an industry worth £0.8 billion to northern Ireland, and directly employed 43,000 people. Further, with two million passengers a year travelling to Northern Ireland via Dublin Airport, the UK’s aviation tax system places Northern Ireland at a significant competitive disadvantage.

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