Tags Tagged With Duty hike
How Does The Government Recover The Vat Rate Change Shortfall?
Obviously, in reducing the VAT rate from 17.5% to 15% for a year will create a shortfall in the government's finances for the year. There are a variety of predictions on exactly how much this will be, however, most agree that it will be somewhere in the region of £12.5 billion. The government will have to make this up in some way or another: One option the Treasury has considered, but is now denying is to INCREASE the tax rate as the economy recovers. The plans seen on an Revenue
Vat Rate Change Comes Early
In a bid to attract customers over the weekend, some of the largest companies in the UK are offering 'VAT rate cut' prices already, and many more will be doing the same in the days leading up to the official rate change. Currys, PC World and Dixons started passing the cut on as soon as it was announced, in a bid to attract more customers to their stores and websites. A spokesman for the parent company said: "We felt it was right thing to do, even though it was complicated. We al