Business News

Are There VAT Increases Ahead?

The British Chamber of Commerce are predicting that we should expect an increase in VAT to help deal with the country’s budget deficit.

David Frost Director General of the British Chambers of Commerce (BCC) said:

“…… the employer National Insurance rise, planned for 2011, should be abolished in full. Most businesses expect VAT to increase after an election to help plug the hole in our public finances. Considering companies have already said that VAT would be less damaging to their operation than a hike in NICs, it seems obvious that the tax on jobs should be scrapped and replaced by a less harmful tax on consumption.”

Internet link: BCC press release