Pages

Sunday, February 14, 2010

New Tax Bombshell: 20% VAT


A rise in VAT is looming whichever party wins the general election, as Labour and the Conservatives draw up plans to balance Britain’s books.

Alistair Darling and George Osborne, the Shadow Chancellor, are both considering raising VAT to as high as 20 per cent — the European average — from the current rate of 17.5 per cent, The Times has learnt.

Doing so would raise an extra £13 billion a year at a time when financial markets are searching for signs that whoever takes power is serious about tackling Britain’s £178 billion deficit.'

Read more...

3 comments:

  1. I have come to the conclusion that no matter how much the Government raises the VAT and other taxes, they always manage to get it wrong.

    The fact is if you are a bad money manager, it doesn't matter how much money you get. You are still going to squander, mismanage and waste it.

    I think that is just a plain fact of today and part of why we are in constant financial turmoil.

    This constant decision to increase and decrease just shows me personally that a) these people do not know what they are doing b) they probably see that maybe they got it wrong on the decrease to 15% and are now trying to make up the shortfall.

    Typical of this bunch, give with one hand and take away with the other.

    I would like to see someone who is fluent and fair in finance leading in the Commons, won't hold my breath though.

    ReplyDelete
  2. Sweden has had 25% VAT since time immemorial..and Finland has had 22%...so where is the beef ?

    ReplyDelete
  3. Lars,

    In the UK, I personally feel that we are overtaxed as it is. This Government is a greedy one, always taking our hard-earned money.

    We already have way too many taxes here, some are:

    Council tax
    Road tax
    Congestion Charge
    Value Added Tax
    Inheritance Tax
    Income Tax
    National Insurance (more deductions from your pay)
    Stamp Duty Land Tax

    Do Sweden and FInland have all these types of taxes as well?

    If not, then you have to compare like for like. If you have all those other extortionate taxes then it's relative, if not, you can't really compare the countries, if you know what I mean.

    Besides, I personally don't like paying my taxes to finance MPs, banks etc who want to line their pockets with my money when I'm already broke, thank you very much.

    Anyway, if they raise the VAT, I personally will just buy less, if the price is right I'll buy, if not, I'm leaving it. Simple really.

    I know so many Graduates who are leaving, or should I say 'fleeing' this country with better offers elsewhere. Do you blame them?

    ReplyDelete

Thanks for your comment it is much appreciated.