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Tuesday
Aug172010

Will the Poor be Affected by VAT Rise, Ask Lib Dem MPs

The VAT rise that was announced in the Budget has been a bone of contention among some MPs.  While many of those in the coalition government have supported the move to raise the level of VAT to 20% (from the current level of 17.5%) not all of them have done so unquestionably.

The biggest issue that is rearing its head, I have noticed, is the effect that such a rise will have on the poorest members of society.  Four MPs from the Liberal Democrat camp would like to see a report being undertaken to see what the possible outcome of the VAT rise would be on this particular section of society.

There is no doubt that tough measures need to be taken to ensure that the national debt is reduced as soon as possible.  But tough measures mean tough times for all of us, and the concern is that the poorest people in society would be unfairly penalised as a result of a blanket increase in VAT.

I can see where the idea and concern has come from.  While increases in taxes are always unpopular, they can be altered so that the rich are taxed more than the poor.  This is deemed as being fair, but a rise in VAT affects everyone because we all go out and buy various goods and services on virtually a daily basis.

I will be keeping an eye on how the fallout from the VAT rise continues.  But whether the report goes ahead or not, if you require any help or advice regarding VAT and how it could affect your business, contact St Matthew now.

 



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