TaxAdministrationSurprise at OFT warning on retailer pledge to pass on VAT cut

Surprise at OFT warning on retailer pledge to pass on VAT cut

Competition experts have expressed suprise at OFT's reaction on fashion retailers' pledge to pass on VAT cut

Competition experts have expressed surprise at the
Office of Fair Trading
(OFT)’s warning letter to leading fashion retailers, after they publicised they
would pass on to consumers the 2.5 percentage point cut in VAT, some saying OFT
lacked ‘common sense’.

Leading fashion retailers, including Sir Philip Green and Sir Stuart Rose,
received the warning letter, urging them to be mindful of the competition law
after Topshop, Next, Marks & Spencer and New Look issued the statement
following a decision by the fashion bosses that a joint approach would minimise
confusion for customers, The Times reports.

OFT is said to have been concerned discussions over the timing of the price
cuts bordered on collusive behaviour, despite Darling asking for a swift
reduction in prices during the Pre-Budget Report.

Although OFT is not expected to take the matter any further, its action has
angered retail chiefs, who regard it as an unnecessary, bureaucratic
intervention.

Further reading:

Retailers say cut in VAT fails to drive sales

Read
The Times story

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

3d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter