Friday 18 June 2010

DORIS CALLS ON CHANCELLOR TO LIFT TAX ON LEARNING


DORIS CALLS ON CHANCELLOR TO LIFT TAX ON LEARNING

Bob Doris, SNP MSP for Glasgow, has written to Chancellor of the Exchequer George Osborne, ahead of the UK budget to support moves by universities across the UK to have VAT reduced on e-resources. Currently electronic resources such as e-journals, e-books and online databases attract a VAT rating of 17.5%, whilst their paper copy counterparts such as books and magazines are VAT exempt. The British Universities Finance Directors’ Group (BUFDG) estimate that VAT on e-resources costs universities around £10 million a year, which is not only costly for the education sector but also a disincentive for new research. It is also understood that lowering VAT on online publications could be revenue-neutral or even revenue-positive to the UK Exchequer over time, given that tax relief would incentivise research.

Mr Doris has written to the Scottish Government and is hoping to enlist the support of Scotland's Education Secretary Mike Russell to support the BUFDG campaign.

Mr Doris commented:

"I welcome the acknowledgement from past and present UK Governments of the importance of zero VAT books. However, with the growing importance of e-resources for learning, particularly in Scotland’s Higher Education institutions, it is now time to look at reducing the VAT burden on electronic media.

“The UK Government could reduce VAT to 5% and potentially not suffer in terms of overall tax take. More importantly, removing this tax on learning could be a huge boost to the education sector.

“The forthcoming budget is an opportunity for the new UK Government to demonstrate a listening approach to the education sector. I have written to Chancellor George Osborne to indicate my support for the campaign and have asked my colleagues in the Scottish Parliament to demonstrate their support by signing a parliamentary motion. I have also asked Education Secretary Mike Russell to make formal representations to the Chancellor on behalf of the Scottish education sector and I sincerely hope Mr Osborne gives this request the consideration it deserves".

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