asked the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Christchurch and Lymington on 24th March 1977, if he will give details of the method of levying the tax referred to in the six EEC countries mentioned; whether they refer to all tourists or only to foreign visitors; if the former, how each country defines a tourist; and to what goods and services the tax applies.
I assume the hon. Member is referring to my answer on 24th June 1977 in which I stated that six EEC countries operate a tourist tax—France, Italy, Belgium, Netherlands, Luxembourg and West Germany. Luxembourg charges a simple percentage supplement on hotel tariffs. In the other five countries various rates of tax are applied—usually not on a simple percentage basis—to hotels and other forms of holiday accommodation such as rooms, villas, and caravan and camping sites. In Belgium, the Netherlands and West Germany taxes are levied at the discretion of local authorities. In France and Italy the tax is devied on a national basis, but varies according to the standard or location of the accommodation.