Novelist. Author of APSARAS and tales from the beautiful Saigh Valley. First person to quantify spiritual values.

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Wednesday 26 June 2013

VAT on foodstuffs

There has been much in the press over recent years about tax evasion by large multi-national Companies and individuals able to benefit from offshore havens. Now we learn that surprise-surprise, the new Age travellers due to move into their new multi-million pound trailer park in Devon are refusing to pay their Community Charge. At least they are being up-front with their intentions and Teignbridge District Council must have known that the travelling community works in a cash, tax-averse economy.
Is it not the case that the only people who pay the correct tax are those who are employed within a PAYE scheme, including all those who work in the public sector. For big Companies, we have to hope that Chancellor Osborne and his team operate in the National interest, not their own when chasing fair tax returns.

I believe that the Government must try to ensure that EVERYONE pays tax and the best way of  doing this is to introduce VAT on food. Spain levies VAT at 4% on basic foodstuffs, rising to 10% for other foodstuffs. To compensate, those who pay tax by PAYE should get a small rebate.

£6.3 billion per week is the value of food sales in the UK. A 4% VAT levy would raise £13,1 billion per annum or roughly the amount being raised in the latest round of cuts. People wouldn't really notice, paying £104 for a trolley load of food rather than £100.

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