Britain VAT rate amongst lowest in Europe
KPMG report adds weight to tax hike predictions
Expectations of a VAT rise have added impetus after a survey found Britain
will have among the lowest tax rate in Europe next year.
A survey by accounting firm KPMG found Britain will be the fifth lowest
indirect tax in Europe at 17.5% come January, when the government will raise the
rate lowered to 15% during the downturn,
The
Financial Times reports.
The average VAT rate in Europe is about 19.8%, according to KPMG.
The news will likely add weight to arguments to hike up the VAT rate next
year, which ever party wins government. Last November, Treasury documents showed
a tax rise to 18.5% was being considered in the 2008 pre-Budget report.
The survey went on to predict a VAT hike to 20 per cent in Europe during 2010
or 2011.
Read the full Financial Times story:
Further
VAT rises likely as Europe sets the pace