Gyms: VAT
The question
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential merits of applying a reduced rate of VAT to gyms and fitness businesses, in the context of the net fiscal effect of potential reductions in NHS and other public costs associated with physical inactivity.
Answered by Dan Tomlinson
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Reduced rates of VAT come at a significant cost to the Exchequer and reduce the revenue available for vital public services. Any reduction in tax revenue would mean higher borrowing, lower spending, or increases in other taxes.
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