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VAT — Up & Up?

 
Chris Sanger of Ernst & Young continues his regular series of articles on tax policy. This week he considers the impending VAT rate rise and asks whether the government will go further
 
With the year quickly coming to a close the UK is facing the end of the temporary reduction in VAT rate from 17.5% to 15% introduced last Pre-Budget Report (PBR). However many are predicting that the rate of VAT will not stay at 17.5% for long and that a further rise to a rate of 20% may be imminent either in this PBR or in the first budget of a new government (of whichever party). This article looks at the international trends and shows that the UK is not alone in looking towards indirect taxes as the way...

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