MAJOR ISSUES BULLETIN
 
     

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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[Font Altered-Bolding & Underlining used-Comments in Brackets]

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NOVEMBER-2008