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British travellers relocating overseas could be put off from taking out international health insurance because of the rise in VAT, according to P J Hayman & Company.
Peter Hayman, director of the travel advice organisation, commented that as of yesterday (Tuesday, January 4th), the UK government will be putting the higher rate of 20 per cent VAT into effect.
"There is a danger that this increase in travel insurance premiums will deter travellers from purchasing essential cover. In particular, those most affected are people who have to pay higher premiums due to age, ill health or decide to take a gap year," he noted.
Mr Hayman called on the government to put the hike on its list of taxes for review, because it is "unfair and inappropriate".
His remarks come after research from sunshine.co.uk revealed that 12 per cent of British people would consider relocating abroad following the VAT increase.
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