Whats everyone think of the 2.5% cut in VAT??
24 November 2008, 04:03 PM
#32
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What a joke, fuel **** and booze will have tax increases to compensate for the VAT. Pathetic 
24 November 2008, 04:15 PM
#39
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How do you work that out?
It won't really help business's out in the slightest.
Business sells something for £117.50 including VAT which you buy.
You pay them £117.50, they keep £100 and give the other £17.50 to the government.
But now you'll only have to pay £115 instead of £117.50.
Said business still get their £100.
You win!
It won't really help business's out in the slightest.
Business sells something for £117.50 including VAT which you buy.
You pay them £117.50, they keep £100 and give the other £17.50 to the government.
But now you'll only have to pay £115 instead of £117.50.
Said business still get their £100.
You win!
24 November 2008, 04:16 PM
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24 November 2008, 04:22 PM
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Yep it's Labour, of course they were going to increase tax somewhere along the line. Never expect anything else with those robbing w4nkers. The VAT cut means bu66er all until we have to start paying for it and helping the inept Government paying back its ludicrous borrowing.
24 November 2008, 04:28 PM
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Last edited by ronjeramy; 24 November 2008 at 04:31 PM.
24 November 2008, 04:37 PM
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24 November 2008, 04:41 PM
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24 November 2008, 04:48 PM
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You cannot say it will have no effect, that would mean that the fundamental relationship between price and sales no longer exists.
The issue is how much of an impact will it have, and that I suspect is market and sector specific.
The issue is how much of an impact will it have, and that I suspect is market and sector specific.
24 November 2008, 04:51 PM
#49
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The key problem in all of this has been the reduction in credit. Until this is reversed, **** all is going to change. It doesn't matter how much tinkering they do.
24 November 2008, 04:55 PM
#50
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A wreckless gamble from a bankrupt government. They won't be happy until they've destroyed the entire economy.
On a related note, I see all police are to be armed with Tazar guns. Probably in preparation for the inevitable civil unrest that's coming.
On a related note, I see all police are to be armed with Tazar guns. Probably in preparation for the inevitable civil unrest that's coming.
24 November 2008, 05:00 PM
#51
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You lot are never happy are you??? they lower VAT by 2,5% and you are still complaining!!! we pay 19% VAT over here as well as 42% income tax, I get 49% of my wages deducted at source for various taxes and insurances.
We used to pay 16% VAT and they increased it by 3% to 19% and no we did not get a payrise to compensate.
We used to pay 16% VAT and they increased it by 3% to 19% and no we did not get a payrise to compensate.
24 November 2008, 05:08 PM
#53
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I worked in retail when it went up all them years ago and the electrical retail industry took it as a hit on their exuberant profit margins, so I would expect them not too pass the savings back on to the customer.
24 November 2008, 06:28 PM
#55
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Just as I thought, it's b*llox!
2.5% cut in VAT, but duty to rise on fuel **** and booze to compensate/offset, BUT THAT DUTY WILL NOT BE REMOVED WHEN VAT GOES BACK UP
And NI to rise by 0.5% across all bands from 2011.
So............more of a take than a give, then?
Darling you f*ckwit! Go now, before the country is bust!
2.5% cut in VAT, but duty to rise on fuel **** and booze to compensate/offset, BUT THAT DUTY WILL NOT BE REMOVED WHEN VAT GOES BACK UP
And NI to rise by 0.5% across all bands from 2011.
So............more of a take than a give, then?
Darling you f*ckwit! Go now, before the country is bust!
24 November 2008, 06:30 PM
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24 November 2008, 07:14 PM
#58
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I hate to add that nothing in shops will be cut by 2.5% in the way you think
If an item currently retails at £100 in a shop the new price will be £97.87 not £97.50
So even less of a saving than people thought!
If an item currently retails at £100 in a shop the new price will be £97.87 not £97.50
So even less of a saving than people thought!
24 November 2008, 07:20 PM
#59
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Chap from the Road Haulage Assoc just been on 5 Live and made the point that their costs have just gone up as although they recover the 15% Vat as input tax, they cannot recover Duty. So, the retail supply chain has just had a cost increase so it makes reductions at the till even less likely.
24 November 2008, 07:24 PM
#60
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so all of this is to try to get you to spend more and get the whole system flowing again? haven't they realised most people are skint and if there's any more money in your pocket as a result of cuts that's probably where it'll stay?
what's the bets that there'll be a watchdog report on shops not passing on the cut to customers soon?
there's no way they'll cut the prices across the board on VATable items. all they've got to say is they were going to raise the price of an item soon anyway and keep it the price it is now, earning them more money
what's the bets that there'll be a watchdog report on shops not passing on the cut to customers soon?
there's no way they'll cut the prices across the board on VATable items. all they've got to say is they were going to raise the price of an item soon anyway and keep it the price it is now, earning them more money
Last edited by hoskib; 24 November 2008 at 07:27 PM.