20% vat

cmonstanley · 28-12-2010, 12:49

who thinks 20% vat will harm the economy

Tealeaf · 28-12-2010, 13:01

It'll certainly harm me when the price of fags and beer goes up.

cmonstanley · 28-12-2010, 13:54

price of fuel will mean higher food prices added on with vat hard times ahead..

MargaretR · 28-12-2010, 14:06

Quote:

Originally Posted by cmonstanley

price of fuel will mean higher food prices added on with vat hard times ahead..

VAT on gas and electricity is 5% - I think it is staying that way.
Forecasted food shortages (which will bring higher prices) are due to crop failures resulting from 'strange weather' and natural disasters.
Food is VAT free for the most part - I resent paying VAT on coconut milk and coconut water - ready made healthy fruit juices are also taxed.

DaveinGermany · 28-12-2010, 14:09

It's not pleasant but required ! And it puts much needed funds back into the pot. There will be an initial outcry, but it will fade with time (I know this because Germany in 2006 had a VAT of 16% in 2007 it was raised by 3% to 19%). This isn't solely a Coalition necessity it would've been due under Labour too as the Country is on its arse due to massive debt & nowhere near enough incoming monies to cover costs.

Rise in UK VAT rate looks likely post-election - Blick Rothenberg Chartered Accountants

As to harming the economy that has already been done ! In the long term the hike while disliked will be beneficial for UK. At least in UK you have the softening of the impact by many major stores doing deals on goods thereby halving the price (BOGOF/3 for 2 and suchlike) here & in most other European Countries these marketing techniques don't exist, you pay what you pay ! Also there are different tax rates for different types of product so the rise will not affect all everyday usage. Scaremongering perhaps or the Doom & Gloom dispensers Cherry picking ?

VAT basics for consumers : Directgov - Money, tax and benefits

Margaret Pilkington · 28-12-2010, 14:16

The thing about the rise in VAT is that it is levied on everyone who buys items subject to the tax........so it cannot be dodged.

MargaretR · 28-12-2010, 14:22

Quote:

Originally Posted by Margaret Pilkington

The thing about the rise in VAT is that it is levied on everyone who buys items subject to the tax........so it cannot be dodged.

...it is also a cheap way to gather revenue, because the wholesalers and the retailers bear the lion's share of the admin costs.

accyman · 28-12-2010, 15:26

what makes this more unpalletable is that we are forking out more vat and tax to get out this mess and the government is throwing it all away to other countries in aid rather than put it towards repairing our economy which is teh reason they are giving for these rises

andrewb · 28-12-2010, 16:30

Quote:

Originally Posted by accyman

what makes this more unpalletable is that we are forking out more vat and tax to get out this mess and the government is throwing it all away to other countries in aid rather than put it towards repairing our economy which is teh reason they are giving for these rises

It's hardly contributing 'all' the money in aid. It's giving a tiny fraction.

cashman · 28-12-2010, 16:39

Quote:

Originally Posted by andrewb

It's hardly contributing 'all' the money in aid. It's giving a tiny fraction.

so are you saying its ok to ring fence aid n increase it? its a ruddy disgrace that ordinary people must suffer more because of this fact. were all in this together............Like hell we are.

walkinman221 · 28-12-2010, 16:56

The foreign aid budget at the moment is set at £7billion pounds which is about £500 per every family in Britain.It seems a lot of this money goes to countries who while having crippling poverty still manage to fund nuclear weapons and large armies.To me charity begins at home when times are hard, if we are drawing our horns in at home the foreign aid should be cut in line if not more so .This would enable us to soften the blow to our own job market ,and ensure essential services do not suffer.

andrewb · 28-12-2010, 17:10

Quote:

Originally Posted by cashman

so are you saying its ok to ring fence aid n increase it? its a ruddy disgrace that ordinary people must suffer more because of this fact. were all in this together............Like hell we are.

I thought you were all about redistributing wealth.

lancsdave · 28-12-2010, 17:22

Quote:

Originally Posted by MargaretR

Food is VAT free for the most part -

True but the cost of producing it, distributing and selling it will rise generally.

Gordon Booth · 28-12-2010, 17:24

Quote:

Originally Posted by andrewb

I thought you were all about redistributing wealth.

That's OUR wealth among OUR people! Especially when there's not much left.Most of this aid disappears into Swiss bank accounts apparently. Members of the Afgan government have been caught carrying suitcases full of it into Iran and were'n't even stopped!
Even poor Haiti has seen most of the aid money sent disappear and there couldn't be a people in more need of help than them!

shakermaker · 28-12-2010, 17:36

The sad thing is, some people are fooled into thinking that this is a fair tax because everyone is subjected to VAT on items consumed. However, the richest 10% spend £1 in every £25 of their income on VAT, while the poorest 10% spend £1 in £7.