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5th March 2010

Politicians should consider imposing VAT on food, children's clothes and household gas and electricity, a report from a think-tank suggests.

Eliminating the exemptions on VAT would make the levy a less complex tax and bring the UK in line with other nations, according to Reform.

The right-leaning think-tank also questioned the structure, simplicity and certainty of the tax system.

Between 50% and 60% of what the average household buys includes a VAT levy.

VAT returned to 17.5% in the New Year after being reduced to 15% on 1 December 2008.

Source: news.bbc.co.uk

 
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