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15 Reasons Why The Vat Rate Change May Backfire.
Adapted From http://iaindale.blogspot.com/2008/11/15-reasons-why-vat-reduction-may.html A reader from the above blog came up with 15 good reasons as to why the VAT rate change may hinder instead of help the economy. We have added some of our own analysis to the comments: 1. Deflationary for the next 12 months -- Inflation causes the cost of products and services to go up over time. This VAT rate change will cause prices to go down, possibly risking the growth of our economoy at a time wh
Has The Vat Rate Change Failed?
In an interview for the BBC, David Cameron has claimed that the VAT Rate Change has failed, saying "The VAT cut has been an unbelievable and expensive failure." When we look at the numbers, it's hard to say otherwise - even after that VAT rate change, the numbers of shoppers was down in December compared to previous years data. Compared to last year, retail footfall was down 3.1% in December from a year earlier, traditionally a busy period in the run up to Christmas. On the VAT
Standard Vat Rates On All Goods 'could Cut Other Taxes By £11bn'.
If a VAT rate change was made so that all items, including food and children's clothing were the standard 17.5%, it would raise enough revenue to increase benefits for poorer families and cut other taxes by over £11bn, a leading economic think tank says today. The pre vat rate change 17.5% duty is around the average for industrial countries but Britain applies zero rates more extensively than most other countries, according to the Institute for Fiscal Studies. Residential housing, childre
Uk Vat Rate Changes
The Chancellor announced in his Pre-Budget Report that, on the 1st of December, the standard VAT rate will reduce from 17.5% to 15% until the end of next year. For consumers, this means that the providers of any standard rate VAT products and services should charge the new rate of VAT from this date. Only standard-rated sales are affected. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions.
Why The Vat Rate Change Is A Future Scam Based On An Empty Promise
Since the UK VAT rate change was announced on Monday, thousands of people from financial experts to the average bystander have chipped in their opinions. Many of the opinions have been cautious, and some have been just plain negative, and for good reason... Benefit To Low-Income Families One of the key claims surrounding this VAT rate cut is that it will benefit low income families. What the government seem to have failed to realise is that by its very nature, VAT