VAT ON CHARITY TEXT MESSAGE DONATIONS

That this House notes with concern that VAT is currently charged on charity donations sent via text message; further notes that text messaging has proven to be one of the fastest growing areas in the communications sector; believes that text donations should receive the same zero rate as cash donations; recognises the significant financial benefits that this may have for the charities sector; further recognises the exceptional example of the Asian Tsunami text appeal which, exempted from VAT, raised over £1 million in three days; and calls upon the Chancellor of the Exchequer to assist charities by abolishing the VAT on text message donations.