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TREASURY TEAM CAN'T
ADD UP ON VAT REDUCTION.
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Some retailers
will not pass on Vat cut
by
Harry Wallop
[Daily
Telegraph-Wednesday, November 26,2008]
A "SIGNIFICANT
minority" of retailers will not pass on the CUT in
VALUE ADDED TAX announced in the pre-Budget report,
according to industry experts.
The move will see
the level of VAT fall from 17.5 % to 15%....
"The
TREASURY can't do their maths," said one leading
shopkeeper.
the CUT should in
theory take down the price of a £399 television by £
8.50, for instance, and reduce an iPod music player
from £179 to £175.15. HOWEVER, retailers ARE
NOT OBLIGED to PASS the SAVING ON and leading
consultants say some of their clients will find the
change both TOO SMALL and TOO CUMBERSOME to
introduce by the time the CUT comes into force on
December 1-2008
At a time when the
retail sector is under immense pressure from a
dramatic fall in in consumer confidence, a number of
leading retailers believe that the CUT will make
LITTLE of NO DIFFERENCE".
[WE as indeed no
doubt the majority of people in the country would
also AGREE it was a diabolical WASTE of TAXPAYER'S
future earnings to have agreed to such a damp squib
attempt at present regeneration when other measures
such as a TAX REDUCTION or INTEREST RATE FALL would have had a greater
IMPACT at this TIME of CRISIS.]
Simon Wolfson the
chief executive of Next, one of the country's
largest retailers described the CUT as Defying all
economic logic.
" the modest price cuts seem all the
more obscure in the context of an increasing risk of
deflation."
Major retailers, such as Marks &
Spencer, Next and Currys have said they are passing
on the
[ time consuming and meagre ] CUT IN FULL.
[There are signs that the American
Treasury are about to introduce a further financial
stimulus after their significant introductory
measures. It is now almost certain that Alistair
Darling will be following their intentions before
long. If were not tied down by our membership of the
corrupt, unaccountable ,wasteful and
undemocratic EUROPEAN
UNION the
TREASURY could have made a more realistic and
effective reduction in the VAT RATE.]
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used-Comments in Brackets]
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NOVEMBER-2008 |