|The ONLY good VAT|
Yet another fecking tax.
Value Added Tax (something of a lie as it adds no value) is a consumption tax in that when a good or service is used ... the person who used it gets stuck with the VAT bill. Sell the item on and voilà ... you get to reclaim the tax you paid 5 minutes ago. If you already see scams of pretending to sell the same thing dozens of times and claiming the tax back on each fictitious sale ... dont bother. Its been done and the Inland Revenue is looking for that one.
This second stage tax (they've already taxed your earnings and now they are taxing the same money again) was invented by a frog in 1954. There is very little justification for a tax that actually penalizes the poor for being poor ... since the poor pay a far bigger percentage of their income in VAT than the rich do. However as it brings in billions of pounds in revenue, no government is ever going to dump it
Currently in the UK the VAT rate is 15%. It was reduced by 2.5% because Crash Gordon thought it would jump start our failing economy ... did it feck! Discounts were already running at 20-30% in the high street and all the VAT did was cost millions to change the tags on the products or it vanished into the existing discounts. The resulting reduction in revenue was replaced by increased borrowing which increased our already dangerously high debt even higher. As usual our esteemed leaders turned a simple reduction in tax into a Cake and Arse Party of the highest quality.