VAT on food

[fullyautomatix]

Is this a good idea? bad idea ? AndyW does not eat food.

If the government is serious about this, then it looks like the desperate last few attempts to raise cash. Will this actually trigger off the violent protests expected from the intelligent masses but that which never happened?

[AtW]

It won't happen, it's just a scare story to prepare public for VAT going up to 20% in order "to avoid putting it up on food".

[OwlHoot]

The EU have long schemed to levy VAT on food and the other exemptions - link

Seeing as the EU calls almost all the shots now, and the British Government are little more than a bunch of jumped up clerks, it may well happen.

edit: As one might expect, there's a lively discussion on this over on a Farmer's forum.

[AtW]

There should be one rate of VAT on all items across Europe.

[Mich the Tester]

There should be one rate of VAT on all items across Europe.

why?

[AtW]

why?

It would make it harder for politicians in separate countries to tax and spend if rate is fixed centrally.

Additionally it would provide for fair competition inside single market - booze trips to France are totally abnormal anomaly: EU should agree taxes that apply to all member states.

[VectraMan]

There should be one rate of VAT on all items across Europe.

It would certainly make things simpler.

They say VAT on food would affect the poor more, but that's not true as clearly the VAT paid on caviar will be far more than the VAT paid on gruel.

[Moscow Mule]

It would make it harder for politicians in separate countries to tax and spend if rate is fixed centrally.

Additionally it would provide for fair competition inside single market - booze trips to France are totally abnormal anomaly: EU should agree taxes that apply to all member states.

We should just ignore the rules we don't like. Spain, Greece and quite a few others seem to get away with it.

[AtW]

We should just ignore the rules we don't like. Spain, Greece and quite a few others seem to get away with it.

VAT is good because it is much easier collectable - it is more predictable especially if food is taxed.

You could probably double VAT take in the UK by taxing all exempt items, this in effect mean that a much lower rate would be needed to raise same amount of money, say 10%.

[Mich the Tester]

The Swiss could make a killing by fixing their VAT at EU VAT – 1 percentage point, as could the Turks and many others.