[WillowTheWhisp]

I can think of upsides and downsides for this idea. On the upside paying tax on what you spend rather than on what you earn, and making different levels for necessities luxuries and pure indulgences sounds good and would probably benefit those less well off and encourage people to save. It might prevent some people from saving up to buy the odd luxury item though if those items were priced out of their affordability range - and who is to say what consitutes a luxury? I remember when VAT was introduced it was only for luxuries.

I do think the tourist industry would suffer, not only with people not coming here from elsewhere, but the indiginous population would probably find it much cheaper to go abroad and so air travel would also increase and with it that nasty polution you dislike. Unless of course air travel was classed as an indulgence and taxed at the highest rate.

Originally Posted by jambutty

The black economy, which is reckoned to run to billions per year, would be drastically reduced. People who do “work on the side” do so to avoid having to pay income tax and/or to supplement benefits. But by paying a tax on what they spend means that they would be contributing to the National Purse when they spend those ill-gotten gains.

Yes I see your point there - but with the demise of one black economy we'd probably see the growth of another - much more stuff falling off backs of lorries and being sold on the black market sans VAT?


It would take a heck of a lot of thinking out and I doubt any government would like to try.