Sunday, February 14, 2010

VAT rise to 20 percent

With a mooted rise in GST to 15 percent are we comparatively lucky? Or do we just have prevaricating leadership attempting to have its cake and eat it too?

Reported in The Times;

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.

Though Labour and the Tories have denied having any current plans to increase VAT, neither will rule it out and The Times understands a rise in the tax is being considered by both parties.

No talk of compensation either.

Of course our rise in GST is supposedly about making the tax system more efficient and less penalising. Not raising revenue.

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