"Let them eat cake!"
Posted on 03/06/2010 5:46:31 PM PST by bruinbirdman
Imposition of VAT on groceries is being actively considered by Whitehall officials as a radical means of reducing the national deficit.
The feasibility of introducing the food tax is being raised informally between civil servants, industry bodies and retail insiders.
So politically-sensitive is the move that all the talks are occurring "under the radar", according to retail industry insiders.
Basic supermarket groceries are currently immune from VAT, along with books, newspapers and children's clothes.
However a VAT levy on food of between three and five per cent would raise billions of pounds in tax and help reduce Government borrowings, which are expected to hit £180 billion this year.
Food sales from supermarkets are estimated to total £120 billion a year.
The tax would be controversial as it would disproportionately affect poorer families. Any move to impose it would be vehemently opposed by the UK's large food retailers, who argue that it would be a 'tax on living'.
Justin King, the chief executive of J Sainsbury, said this weekend that a tax on groceries would be a "very bad idea". Another supermarket executive said last night that the tax would be "political dynamite".
The topic is being tentatively brought up in Whitehall as politicians, lobbyists and civil servants examine possible ways of raising revenues, according to multiple retail industry sources.
An increase in headline VAT above its current 17.5 per cent level is also being mooted.
One senior industry executive said: "VAT on groceries is being talked about in very tentative terms, rather than as a formal consultation. But it is happening in all parts of Whitehall. It is informal and sensitive. It is such red hot topic."
"They are thinking the unthinkable. It might not happen, but don't think that people are not having that conversation. They are."
A Treasury
(Excerpt) Read more at telegraph.co.uk ...
"Let them eat cake!"
funny how reducing spending never seems to be an option
What? what was that you said? value added tax? tax on food?
Oh, that's different. Nevermind. /Latella
“An increase in headline VAT above its current 17.5 per cent level is also being mooted. “
So they have a 17.5% tax on everything they buy. Boy I bet that stimulates the economy.
Government SHOULD be funded by taxes paid by everyone, not just the “rich”.
Isn't that what the "Fair Tax" is all about?
Let them eat fuzzy bunny slippers
The Brits are not known for their food anyway. Order a pizza from America. It’ll be cold when it arrives, cheaper and better for you.
RATS are crazy about a VAT. Makes somthing trickle down their leg.
Sorry, Bunny. It was just right to ping ya to this thread! :)
They tried putting taxes on toothpaste but got no revenue...
Dream on.
I guess it would never occur to these ‘civil servants’ to possibly shrink government to reduce government borrowing.
If they need money more quickly perhaps they could sell some superfluous government assets like the BBC.
I would think that they could raise a few million pounds by shedding that white elephant and by so doing they could also eliminate a hated tax on TV viewing.
If you drive a car,
I’ll tax the street.
If you drive to city,
I’ll tax your seat.
If you get too cold,
I’ll tax the heat.
If you take a walk,
I’ll tax your feet.
Don’t forget the other Bunny Freeper.
Psycho Bunny scares me...
LOL! Haven’t seen that one before!
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