VAT rise on the cards

[eps]

Are Labour going to announce something in the budget??

http://www.pcr-online.biz/news/33304/VAT-rise-on-t...

[MX7]

I think it's going to be 20% soon, regardless of who wins the election.

[AshVX220]

They have no choice (any of them) it's the only realistic way they can start to reduce the debt surely.

[AndrewW-G]

I wouldn’t be surprised to see the 17.5 rate go to 20% and currently zero rated items (food, children’s clothing etc) go from 0% to 10%

[Monki]

AshVX220 said:

They have no choice (any of them) it's the only realistic way they can start to reduce the debt surely.

Taking an axe to the public sector non-jobs would help reduce the debt too.

[tangent police]

What do the Europeans recommend?

They were moaning about it. Surely they have some sort of idea here (as they are in charge)

[AshVX220]

Monki said:

AshVX220 said:

They have no choice (any of them) it's the only realistic way they can start to reduce the debt surely.

Taking an axe to the public sector non-jobs would help reduce the debt too.

I fully agree, but that ain't gonna happen is it, not under labour, so not with the current budget. Then again, it's unlikely the Tories will get in anyway, they seem determined to throw a gaurenteed win away. Not that I blame them, who'd want to inherit the current debt and load of ste!

[Mojocvh]

AndrewW-G said:

I wouldn’t be surprised to see the 17.5 rate go to 20% and currently zero rated items (food, children’s clothing etc) go from 0% to 10%

Bring it on, it will be the start of something BIG!

[JagLover]

AndrewW-G said:

I wouldn’t be surprised to see the 17.5 rate go to 20% and currently zero rated items (food, children’s clothing etc) go from 0% to 10%

A number of zero rated items should be full rate not 10% and domestic fuel should return to the full rate.

[Parrot of Doom]

A tax on food for the home.

Brilliant. Now, to even live, one must pay tax.

I wish the allotments would hurry up, I want my plot.

Edited by Parrot of Doom on Wednesday 17th March 16:54

[Fish]

JagLover said:

AndrewW-G said:

I wouldn’t be surprised to see the 17.5 rate go to 20% and currently zero rated items (food, children’s clothing etc) go from 0% to 10%

A number of zero rated items should be full rate not 10% and domestic fuel should return to the full rate.

10% on housing might be a bit hard to swallow on top of Stamp duty!! My business might as well close straight away.

[SmoothRB]

Monki said:

AshVX220 said:

They have no choice (any of them) it's the only realistic way they can start to reduce the debt surely.

Taking an axe to the public sector non-jobs would help reduce the debt too.

That would be politcal suicide. Not only would unemployement shoot up, but Nu Labour needs its public sector as a client group for votes.

[Don]

AndrewW-G said:

zero rated items (food, children’s clothing etc) go from 0% to 10%

Political dynamite, that. Putting it on food would cause absolute outrage. And rioting. Don't forget the rioting. We haven't had that yet and no recession is complete without it. So maybe they will do it so we can have the rioting.

[klimakool]

we need to sell the debt, sell a few public owned companys, let santander finally buy all our banks. putting vat up is an outrage, its hard to see most if the secret taxes as it is. council tax for example, £2000 a year, no £2260 a year must be earned before income tax drops you to the right amount for council tax. home fuel tax fluctuates more than my dogs bowels. i'd like to see the consequences of a home food tax being introduced, we'd certainly see less immagrants coming to open shops. our governments financial state would be fixed tomorrow if the stopped giving junkies giros, abandoned all asylum payments and made evryone work or go hungry

[Mclovin]

yes make the innocent tax payer responsible for the complete fack up this government has made....

[B17NNS]

I'd rather see a consumption based tax increase than a stealth one.

At least 'everyone' has to pay VAT.

[powerandtorque]

Don said:

AndrewW-G said:

And rioting. Don't forget the rioting. We haven't had that yet and no recession is complete without it. So maybe they will do it so we can have the rioting.

Would rioting be enough of a reason to posepone the election and keep the current lot in power for longer? After all, people have questioned whether there would be some kind of "state of emergency" declared so that the election didn't have to go ahead, and full blown rioting seems like the perfect reason...

[Zod]

Monki said:

AshVX220 said:

They have no choice (any of them) it's the only realistic way they can start to reduce the debt surely.

Taking an axe to the public sector non-jobs would help reduce the debt too.

Indeed. Benefits cost less than salaries for non-jobs. Halve public sector pensions too.

[B17NNS]

TVR Moneypit said:

Tis was the nasty bankers. They did it.

And Thatcher.

[Eric Mc]

Don said:

AndrewW-G said:

zero rated items (food, children’s clothing etc) go from 0% to 10%

Political dynamite, that. Putting it on food would cause absolute outrage. And rioting. Don't forget the rioting. We haven't had that yet and no recession is complete without it. So maybe they will do it so we can have the rioting.

You would be surprised how many "food" items are already Standard Rated for VAT purposes.
The difference in VAT treatment between differing classes of food causes all sorts of technical and other issues and takes up a surprising amount of retailers' time and effort in arguing over such matters.

A huge number of VAT cases have been triggered by arguments over whether a certain type of biscuit or a certain type of crisp was a "food" or a "confectionery".
Other rows have arisen over whether a supply of food was "a normal supply of food" or a supply of "hot prepared food".

Maybe just bringing in a flat 10% for ALL foodstuffs would be better all round.

Edited by Eric Mc on Thursday 18th March 08:26