Tuesday, January 4, 2011

England Raises VAT(Value Added Tax) from 17.5% to 20%.

This is to reduce the deficit. Won't work.

Consumers will put off any purchase and go without.
Or, there will be introduced ways to by pass the tax by bartering or "under the table" schemes.

What should be done is-
They should drastically reduce the VAT and then shoppers from all over Britain and Europe will be shopping in London or via the internet; thereby boosting sales and considerable revenue by the increased sales.

Read more from BBC . Read the article and view the charts which show most of Europe are at 20% VAT. Reducing VAT to 15% , the market would be deluged with bargain hunters.

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