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<p>The government explored the impact of VAT on the tourism industry in its recent
call for evidence, in the context of a focus on Northern Ireland. The government published
its response at Budget 2018.</p><p> </p><p>In light of the legal restrictions on VAT
devolution and the fiscal implications of reform on a UK wide reform, the government
will not be making a change at this time.</p><p> </p><p>This is a complex issue, affecting
an important source of revenue for the Exchequer and the government will continue
to analyse the evidence and receive representations, in order to keep these issues
under close review.</p>
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