Quote:
Originally Posted by derekgas
I have just seen on the news that vat is to be cut to 15%, that is good for things vat was paid at 17.5% for, but cold food, kids clothes etc are non vat, so this will only benefit business, if they pass it on that is good, but I suspect you may get 2.5% price hikes to cover for the lost revenue.
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So my understanding that vat revenue didn't matter (as vat paid was offset by vat income, with the difference going to mr taxman if there was any left) is totally off the mark?? How can a supplier who charges vat increase prices when what we pay is cost plus vat - whatever amount vat is??
Please excuse me if I am wrong but if there is a cut in vat then what we pay for goods SHOULD drop too. If they don't then surely the shop/company/individual who sells the goods should be held to account for blatantly increasing their prices and therefore their profit??