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Re: UK & EU Agree Post-Brexit Trade Deal
Quote:
Originally Posted by RichardCoulter
AFAIK VAT was introduced to pay our contributions to the EU. Don't all EU countrirs have VAT as a way of funding their contributions to the EU? I'm not sure if this new tax paid for the full or only part of our contributions.
If it paid for our full EU costs, it didn't cost our Government any extra, as it was the public that paid for it.
I think that VAT replaced a lower sales tax, so for any extra money to arise out of us leaving (net of the ongoing commitments) the Government will have to continue taxing us at the current rate.
If they scrap VAT (can the public be charged it if we aren't in the EU?) and replace it with the old lower sales tax, there won't be any spare money to spend or reduce other taxes!
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VAT raised £130 billion last year in the U.K., and we paid the EU (after rebate) between £8 billion and £11 billion (depending if we count payments that the EU makes directly to the UK private sector such as grants to universities.).
I don’t think we will be abolishing VAT...
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Last edited by Hugh; 27-12-2020 at 09:38.
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