Reply to: VAT on food

[Moscow Mule]

Atw, you have an incredible faith in politicians. You think that if tax rates were harmonized across the EU then taxes would go down. They wouldn’t. All taxes would rise to the highest level in the EU. So you’d be paying Danish booze prices, British tobacco prices, Dutch car taxes, French income taxes, British fuel prices etc. Why? Because governments could then get away with it.

Bloody socialists.

[DodgyAgent]

If they want to do that, then it's fine, however they should not need to.

If booze/smokes were available in UK supermarkets with the same level of duty as in France, then 90% of such booze trips to France would go away. That's because they are an economic anomaly created by artificially high tax limits.

And if people still want to go to France to buy booze then it's fine by me - they SHOULD NOT HAVE TO DO THAT though.

It is not a question of need it is a question of choice. Your idea to have standard VAT rates removes choice and empowers the wrong people (governments).

[Mich the Tester]

If they want to do that, then it's fine, however they should not need to.

If booze/smokes were available in UK supermarkets with the same level of duty as in France, then 90% of such booze trips to France would go away. That's because they are an economic anomaly created by artificially high tax limits.

And if people still want to go to France to buy booze then it's fine by me - they SHOULD NOT HAVE TO DO THAT though.

Atw, you have an incredible faith in politicians. You think that if tax rates were harmonized across the EU then taxes would go down. They wouldn’t. All taxes would rise to the highest level in the EU. So you’d be paying Danish booze prices, British tobacco prices, Dutch car taxes, French income taxes, British fuel prices etc. Why? Because governments could then get away with it.

[AtW]

If people want to travel 50 million miles to the moon to buy something that they can get from the local corner shop why shouldnt they be allowed to do so?

If they want to do that, then it's fine, however they should not need to.

If booze/smokes were available in UK supermarkets with the same level of duty as in France, then 90% of such booze trips to France would go away. That's because they are an economic anomaly created by artificially high tax limits.

And if people still want to go to France to buy booze then it's fine by me - they SHOULD NOT HAVE TO DO THAT though.

[Mich the Tester]

So what?. If people want to travel 50 million miles to the moon to buy something that they can get from the local corner shop why shouldnt they be allowed to do so?

That would be taking the piss.

AtW

[DodgyAgent]

Because it makes no economic sense - delivery cost of such common goods in a bulk is much cheaper than having many people travel to buy handful of those goods.

So what?. If people want to travel 50 million miles to the moon to buy something that they can get from the local corner shop why shouldnt they be allowed to do so?

[AtW]

why not?

Because it makes no economic sense - delivery cost of such common goods in a bulk is much cheaper than having many people travel to buy handful of those goods.

[AtW]

That forces their home country to reconsider tax policies.

Has UK changed its booze duty policies as the result of mass travel to France? I think not - no country would do it so long as they can get away with it.

That's why taxes should be set centrally in EU so that no Liebor **** could come to power to start taxing and spending.

If Govt wants to spend money it should earn it first through creation of policies that would encourage long term investment and thus natural expansion of GDP rather than one based on debt fueled by tax/spend.

[Mich the Tester]

And there's no restriction on movement of goods/purchases between Swiss/EU territory? Or are there import/export limits?

They do, but the restrictions aren’t all that great and are difficult to police given the sheer amount of traffic crossing Swiss/EU borders every day. Officially you’re limited to how much money you can take to Switzerland and sometimes the German officials will check to see if you’ve stashed a large amount in the car. Officially the Swiss customs check this too, but what do they gain in practice from discouraging people from bringing their cahs to Switzerland?

[DodgyAgent]

It's an anomaly because people should not be going to next country to buy same goods just because of artificially higher taxes in their home country.

why not?

[Mich the Tester]

It's an anomaly because people should not be going to next country to buy same goods just because of artificially higher taxes in their home country.

Yes they should. That forces their home country to reconsider tax policies. Don't claim that voting would change that; if it ever did it would be abolished.

[AtW]

What exactly is wrong with this anomoly?

It's an anomaly because people should not be going to next country to buy same goods just because of artificially higher taxes in their home country.

[DodgyAgent]

Smugglers take chances and won't do it for small %-tage, I'd say risk factors would demand at least 5-10% premium, it's the cross border legit trade that's the issue - high UK taxes on booze/smokes create anomaly of people going to France to buy those items. It's total bollox and can only be solved by having unified tax system.

What exactly is wrong with this anomoly? Are you saying therefore that there should be only one search engine. Just imagine how simple that would be.

[Moscow Mule]

Yep, it's in the European Free Trade Area, but they can set their taxes as they like.

And there's no restriction on movement of goods/purchases between Swiss/EU territory? Or are there import/export limits?

[AtW]

Irrelevant, except for the long land borders that make smuggling v easy indeed.

Smugglers take chances and won't do it for small %-tage, I'd say risk factors would demand at least 5-10% premium, it's the cross border legit trade that's the issue - high UK taxes on booze/smokes create anomaly of people going to France to buy those items. It's total bollox and can only be solved by having unified tax system.