VAT increase 'an administrative error'
Wednesday, 26 November 2008 08:25

This was no administrative error.

You can bet that if Labour are returned to power at the next election VAT will rise, and not just to 18.5%, but more like 20%. There is a black hole in the government finances and that means only one thing. Increased taxes.

Labour being labour and meaning labour in the hard work with little reward sense, we will all be taxed and taxed just like Dennis Healey said 'until the pips squeak'.

Do not think that labour will tax the rich. Taxing the rich is just a sop, it doesn't bring in much money in real terms. What really brings in the cash for the government is the tax that everyone pays and can't avoid paying. VAT, fuel tax, National Insurance, car tax and basic rate income tax. These are the ones that bring in the money and will get hiked up.

If you need proof that VAT can go higher here are some rates from around Europe:

Country VAT rate
 Sweden 25%
 Norway 25%
Denmark 25%
 Iceland 24.5%
Poland 22%
 Ireland 21.5%
Belgium 21%
Portugal 21%
 Italy 20%
 France 19.6%
 Greece 19%
 Germany 19%
 Netherlands 19%
UK 17.5%
 Cyprus 15%

 Alistair Darling must be itching to get our VAT rate up in line with other European countries. Only Cyprus has a lower VAT rate than the UK.

It's interesting to note that the UK can't set it's VAT rate lower than 15%, neither can any country in the EU, we as a country are bound by what the EU says and can't really do our own taxation. Remember that when politicians are talking about being in control!



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