BORIS Johnson has been urged to axe VAT on Covid tests for travel, saving families hundreds of pounds.
Travel industry leaders and politicians warn the punitive costs of tests are threatening the sector’s recovery and unfairly penalising Britons looking for a long-awaited foreign holiday.
And it has also emerged that the PM threatened to demote Rishi Sunak after reports the Chancellor called for travel restrictions to be eased.
Currently a family of four travelling to Spain could pay more than £1,300 on PCR tests even if adults have been vaccinated – including a mandatory test before returning to the UK and then a day two PCR test once home.
The Sunday Express has been told talks have taken place in Government about removing VAT, which adds 20 per cent to test costs.
Industry figures had been briefed to prepare, in the coming days, for “a major Government announcement” on the issue, raising hopes the price may finally be coming down.
But a Treasury source last night sparked anger by insisting that ending the holiday tax is “definitely not something we are looking at”.
The issue of travel has caused tensions to flare at the very highest level of Government.
Last week, Chancellor Rishi Sunak wrote to the PM calling for travel restrictions to be eased because they were so damaging to the economy. However, Mr Johnson was first aware of the letter when it was published in the media.
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