Tsunami appeal gets VAT back

The Treasury is donating £2 million to the Disasters Emergency Committee (DEC) in recognition of the VAT collected on events and sales in support of the tsunami appeal.

This is in addition to the £15 million already given in tax relief on public contributions to the appeal, which was set up in the wake of the Indian Ocean Boxing Day disaster.

“Millions of people and businesses across Britain have shown their compassion and generosity, attending charity concerts, buying charity CDs and buying other goods and services designed to raise money for the tsunami appeal,” said paymaster general Dawn Primarolo.

“In light of this unprecedented response, we are therefore pleased to make this special donation to cover the VAT collected on fund-raising events and sales, so that all the proceeds of fund-raising sales can go to ease the suffering of those people and communities affected by the tsunami tragedy.”