VAT will be 20% within a few weeks

[ajstoneservices]

So VAT will be 20% within a few weeks.

But, will it be added to food and childrens clothes as proposed by IMF.?
What about the 5% rate on utility maybe up that a little too.

Taxed as you spend is a good idea as long as you're earning enough in the first place.

VAT is not charged by HM Revenue and Customs on certain items, including food, children's clothes, domestic passenger transport, books and prescription drugs.

 

[Shifty22]

I'm a little ****ed about the VAT rise to be honest, all 3 main parties stated they had no intention of raising VAT before the election and sure enough it is one of the first tax hikes they implement!

We all know it's inevitable that tax will rise and I suppose if they didn't take it in VAT, they'd take it elsewhere, just annoyed that it's an unavoidable tax because everything you buy has got bloody VAT on it, including petrol

 

[ajstoneservices]

If they do impose vat on food then I'm certain they will raise benefits inline with the rise. so in the end, it's going to be the working man that pays.

 

[kirkgas]

if they need to raise more money then VAT is better than income tax, at least the benefit cheats and cowboys need to buy food, petrol and material to do their work so at least they will need to pay in

 

[Thermo]

no ones said theyre going to do it apart from the journalists

 

[joinerjohn]

no ones said theyre going to do it apart from the journalists

Hear Hear Thermo. I think Ajstone is jumping the gun a bit,,, But we'll wait and see.
IMHO something has to be done to reduce the countries deficits and hard times lie ahead. People will soon forget that it was Labour that got us into this mess in the first place.
Here in Derby we had a Labour run council. They planned this that and t'other. All projects that had been started. Then in the local elections the Lib Dems took control.
Within a fortnight the Lib Dems were being blamed for everything that was happening in the city. Lack of a bus station. (it was demolished by the labour administration so a new one could be built)
The Quad arts centre (already started under labour). Christ, some people even blamed the Lib Dems for the weather.
Yep , people have short memories.

 

[Lincsbodger]

Yep , people have short memories.

old saying - a week is a long time in politics.

 

[Nige F]

if they need to raise more money then VAT is better than income tax, at least the benefit cheats ( Fags+ Boose ) and cowboys need to buy food ( Chilli Beans) , petrol and material to do their work so at least they will need to pay in

Don`t they get the punter to buy the materials

 

[joe-90]

Raising VAT to 20% would raise £14 billion in a year. Last month alone our deficit went up by £23 billion. Our yearly interest on our debt is £40 billion. That's before we even think of paying off the £900 billion that we owe. We need more than a VAT rise to get us out of this mess. Thanks Gordon.

 

[oompah]

no ones said theyre going to do it apart from the journalists

VAT is not charged by HM Revenue and Customs on certain items, including food, children's clothes, domestic passenger transport, books and prescription drugs.

The IMF said Britain could raise 3.3 per cent of its economic output – about £50 billion a year – merely by halving the number of exemptions.

It added that despite having among the highest levels of petrol duty in the Western world, Britain could afford to increase fuel taxes slightly more, raising a further £3 billion.

The suggestions were likely to fuel suspicion that George Osborne, the Chancellor, would raise a series of taxes, including VAT, at the emergency Budget, which is due to take place within 50 days.

City commentators, including Robert Chote, the head of the Institute for Fiscal Studies, and 24 of the 28 economists regularly surveyed by the Treasury, pinpointed the sales tax as the most likely candidate to rise in the Budget.

 

[ajstoneservices]

I guess journalist are not the only ones.

[/quote]One of the UK's best-known retailers, with sales of well over £10bn, is telling its overseas suppliers to start adjusting its price tags on clothing and other products to assume a VAT level of 20pc. The goods in question will hit the shops in February of next year.

Meanwhile the impact of a VAT increase on UK households is revealed in new research by The Sunday Telegraph showing that day-to-day living costs in the average home would rise by at least £216 a year if the rate was raised from 17.5pc to 20pc.

 

[joe-90]

This years deficit will be £164 billion. We already owe nearly £900 billion. Our yearly interest is £40 billion.

We need cuts/tax rises of around £300 billion per year if we are to get out of the financial hole that we are in.

No country since the dawn of time has ever got out of a hole that deep.

So what's the point of talking about a VAT increase that raises just £14 billion per year?

Where's the other £286 billion coming from each and every year?

This is the true state of the economy. It just can't be done. Even when the IMF step in (as they must) we will still one day default on our debts.

 

[oompah]

Just what will happen if we along with the pigs default on the loans who is going to repossess the country.

They say that the Greeks are heading here in droves now their own economy has gone down the pan. Next will be the Spaniards and the Portuguese.

What will they gain by this if we are as bankrupt as them.
Six months down the line with the coalition in tatters after trying to push through tax rises and savage spending cuts Labour and a dream ticket of the Miliband bros will come riding over the hill and say we told you so,and spending will start like its going out of fashion again,economics is simple

 

[JohnD]

But, will it be added to food and childrens clothes as proposed by IMF.?

is it?
have you evidence of this assertion?

 

[ajstoneservices]

But, will it be added to food and childrens clothes as proposed by IMF.?

is it?
have you evidence of this assertion?

??