November 29, 2008
Dear Alistair Darling..
Did you give any thought whatsoever to your ill conceived plan to temporarily lower the VAT rate from 17.5% to 15%?
Have you considered the cost to business people?
How about all the people in the mail order business who will need to reprint their catalogues – who pays for the reprinting?
What about businesses with a wide variety of products who will have to reprice everything without disrupting the sales floor – who pays for the overtime?
And what difference is it actually going to make to the price of goods?
Take a product that is currently selling for £47.00 including VAT. Do you think the £1 reduction in price to £46.00 will really help sales?
And do you really think that the big guys are going to change their prices from £19.99, £19.95 or whatever – or are they much more likely to absorb the VAT reduction into their bottom line while screwing their suppliers for the lower prices?
Politicians really shouldn't interfere in things they know nothing about. In fact there should be a law against it!
Comments on Dear Alistair Darling.. »
Hi John
Yes, Darling Alistair and his cronies must never have thought this through! A complete waste of time and energy, but . . .
It is actually keeping me busy for a time – updating two client's accounts software (those without manufacturer's upgrade contracts). Wonder if this could be a regular thing?? Hee Hee!
Seriously, though, at a time when most prices are changing anyway – will anyone see a benefit? I doubt it.
Also those retailers who have been advertising goods at the new VAT rate since it was first announced are actually still having to pay 17.5% themselves – so they are actually reducing their net prices to compensate. Why on earth can't they do that ALL the time?? Just a con!
and . . . Just my thoughts . . . .
Couldn't agree more, this is mad.
Why don't they do something useful like making it illegal to repossess houses in the short term.