How much is the Treasury making on extra 2.5% VAT?

19 March, 2010

Q The government has

reinstated VAT on alcoholic drinks to 17.5%. Has anyone calculated

how much this will raise for public finances???A Yes – the Treasury. It estimates the benefit to the Exchequer for the remainder of this tax year (calendar months of January, February and March) will be £160 million, although this presumably assumes sales are not harmed by the price increase – where it is passed on.

So over 12 months the figure would be four times that, £640 million.




Bookmark this


Site Search

COMMENT

Faith in fakes

One of the most fascinating stories in wine, fit to stand alongside the Judgement of Paris, is that of Rudy Kurniawan, a man who managed to fool friends, auction houses and experts into believing they were drinking some of the world’s most expensive wines.

Click for more »
Upcoming events

Polls

Is blended Scotch overshadowed by single malt in retailers?

  • Yes
  • No
  • Don't know

Facebook

Twitter