TaxCorporate TaxTesco FD warns against VAT rise

Tesco FD warns against VAT rise

Laurie McIlwee urges coalition to hold off raising VAT to 20% because it would dent the "fragile" economy

The FD of supermarket giant Tesco has called for the government to freeze VAT
at 17.5% because the expected rise to 20% would damage the “fragile” economy.

Laurie McIlwee issued the warning as Tesco unveiled disappointing
first-quarter results in a presentation to the City.

“The recovery is happening but it’s fragile and therefore the
balance is important,” said Laurie McIlwee, Tesco’s finance director.

“VAT is going to be part of the austerity package but it is a question of
when
you do it. The best thing would be to wait a bit.”

However, advisers have said the increase would be an obvious revenue-raising
move for a government because it would generate about £12bn of revenue.

Putting VAT on food would be “nonsensical”, McIlwee added.

Related Articles

'Innocent' companies will be hit by tough HMRC anti-fraud powers

Corporate Tax 'Innocent' companies will be hit by tough HMRC anti-fraud powers

1y Stephanie Wix, Writer
Building company director banned for 7 years for VAT under-declaration

Corporate Tax Building company director banned for 7 years for VAT under-declaration

1y Richard Crump, Writer
Berkshire motor business VAT fraudsters sentenced

Corporate Tax Berkshire motor business VAT fraudsters sentenced

1y Richard Crump, Writer
The growth and challenges of digital sales taxes globally

Corporate Tax The growth and challenges of digital sales taxes globally

1y Editorial comment
CIoT urges government to rethink VAT approach to online traders

Corporate Tax CIoT urges government to rethink VAT approach to online traders

1y Richard Crump, Writer
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter
HMRC calls for extra time in Spot the Ball legal battle

Corporate Tax HMRC calls for extra time in Spot the Ball legal battle

2y Fraser Simpson, Reporter
Bishop Fleming launches new cloud accounting product

Accounting Firms Bishop Fleming launches new cloud accounting product

2y Richard Crump, Writer