It was ‘not a good idea’ and did not give consumers a ‘real incentive to
spend’. That’s the verdict on Alistair Darling’s cut in VAT from the chief
economist at the International Monetary Fund.
Olivier Blanchard made the comments in an interview with leading French
However, Blanchard reiterated his support for a fiscal stimulus, but
suggested it might have to be larger than previously stated at 2% of GDP.
‘If the circumstances require it, states must be ready to do more – 3% or
more if necessary. We must think about it now because it is not easy to spend
such large sums of money efficiently,’ Blanchard is quoted saying.
But he went on: ‘Temporarily cutting VAT, a measure that was adopted in Great
Britain, does not seem to me to be a good ; 2% less is not perceived by
consumers as a real incentive to spend.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states