VAT Cut - Will it make any difference?

16 replies
Found 25th Nov 2008
2.5% off of everything sounds good on paper (although it is actually 2.13% as 2.5% will no longer be added to the price before tax rather than deducted from the price with tax), however the replacemnet on fuel of the reclaimable VAT with non-reclaimable duty means that haulage firms will actually end up paying more for their fuel which leads to price rises.

I also feel that very few retailers will even bother with the deduction as it is so minimal - can you see your newsagent, for example, knocking 2p off of a packet of Haribo? What about your council car park - will it now be 98p to park rather than £1? Will tickets for football be 50p less? Will it be £4.80 to the cinema instead of a fiver?

It just isn't going to happen.

The only ones to benefit will actually be the retailers who might make a small amount of additional profit. The public will only benefit if they are buying cars or aother high value goods.

The fact that the cut isn't until Monday will also kill off all shopping this weekend.

R

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16 Comments

Correct! Its All A Pile Of Poo

are we going to ask for it back at tesco - asda etc - mmmm i just might!!

as national insurance going up

do they think we are suckers.....................................YES!!!!!

are we??........................................................................NO!!!!!!

holly100;3560216

are we going to ask for it back at tesco - asda etc - mmmm i just … are we going to ask for it back at tesco - asda etc - mmmm i just might!!as national insurance going up do they think we are suckers.....................................YES!!!!!are we??........................................................................NO!!!!!!



I'm afraid most of us are, otherwise we'd all be out on the streets demanding an election or a change in policy. You can blame the British apathy towards politics as much as anything, if they thought we'd do anything about it half the policies this government has pushed through never would have been even proposed.

This is my cynical view in three bullet points.
1.The prices will hardly change (if at all) and the shops will absorb the profit.
2.Then the VAT goes up and the shop will increase prices and blame VAT.
3.The consumers will get shafted

Is Brown Trying To Be A Dervish?

Banned

Will it make any difference?



No, yet another hare brained labour idea that just hasn't been thought through. Raise the tax threshold and then we'd see a difference!

holly100;3560216

are we going to ask for it back at tesco - asda etc - mmmm i just … are we going to ask for it back at tesco - asda etc - mmmm i just might!!as national insurance going up do they think we are suckers.....................................YES!!!!!are we??........................................................................NO!!!!!!



There isn't any vat on food is there?

Shouldn't fuel now come down another 2p or so.

Sweet ef-ay is going to make a difference, I'm like £300 off paying more NI... bloody wonderful... if you don't have a kid or are loaded with pots of money then ur like me and sweet ef-ay will help, just pay more tax lol

greg_68;3560259

There isn't any vat on food is there?



no or books

there is on alcohol, cigs and clothes and shoes though..

This Is Not About Average Joe Like Me Or You Its To Stop Businesses Going Under By Giving Them A Legal Way To Shaft Us,we Got Our Chance (or At Least Some Did)with The Benafit Of The Bank Of England Dropping The Interest Rate,
Shame This Legal Theft Is Too Late For Some(woolies)

raptorcigs;3560284

This Is Not About Average Joe Like Me Or You Its To Stop Businesses Going … This Is Not About Average Joe Like Me Or You Its To Stop Businesses Going Under By Giving Them A Legal Way To Shaft Us,we Got Our Chance (or At Least Some Did)with The Benafit Of The Bank Of England Dropping The Interest Rate,Shame This Legal Theft Is Too Late For Some(woolies)



I dont think we will see reductions and if we did its pennies unless you are going to buy a car...

i do think though that after the 13months they will increase it and the shops will put prices up.

Banned

greg_68;3560259

Shouldn't fuel now come down another 2p or so.



no as 2p added to fuel duty + 0.3p VAT

VAT reduction is about 2p so petrol will actually go up!

Have Labour even considered the extra work companies will have to do to their systems for this 13 monthVAt reduction? DOUBT IT!

louloo;3560306

I dont think we will see reductions and if we did its pennies unless you … I dont think we will see reductions and if we did its pennies unless you are going to buy a car...i do think though that after the 13months they will increase it and the shops will put prices up.


I CONCUR

csiman;3560315

no as 2p added to fuel duty + 0.3p VATVAT reduction is about 2p so petrol … no as 2p added to fuel duty + 0.3p VATVAT reduction is about 2p so petrol will actually go up!Have Labour even considered the extra work companies will have to do to their systems for this 13 monthVAt reduction? DOUBT IT!



lol it would cause chaos if it actually happens and retailers revise all prices! I can see BHS and M&S etc doing a special sale like 5% off everything-a beat the vat sale or similar.

you'll save the full reduction if you shop at places like makro, when the VAT is added at the checkout

How many shops are going to jump on the '15%' VAT bandwagon?
I've had an email from Overclockers this morning saying their dropping prices early.

Does GB and his cronies not see that dropping VAT by a miserly amount is not going to 'kick-start' the economy?
What a load or s***e!!

Between the lot of us at HUKD, I think we could come up with a better Budget!! :shock:
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