BCC want to increase VAT
The British Chambers of Commerce believes getting tough on VAT would benefit the country more than its current pursuit of NICs
British Chambers of Commerce (BCC) believes an increase in VAT would be much
better than the current planned rise in National Insurance.
The BCC estimates that a one percentage point increase to 18.5% will raise
£4.5bn. This compares to its forecast that a freezing NI contributions would
benefit businesses by £5.1bn the
Daily
Telegraph reported.
David Frost, BCC director general, said: “It’s a tough call but we have to be
realistic about repairing the public finances and promoting recovery.”
A survey of members at the BCC showed in their opinion, over 40% of companies
want the next administration prioritise tackling the public deficit, 22% want a
vigorous assault on red tap and 13% want a more competitive tax system
Increasing National Insurance contributions was seen as the most damaging tax
rise for businesses.
“Raising a damaging tax on business like NICs will be counter productive. It
will mean fewer jobs and less tax revenue in the long-term. While businesses
fully understand the need to bring down the UK’s deficit they are clearly saying
that using VAT would be a less damaging way to achieve this,” Frost added.
Further reading:
British
Chambers of Commerce tells Treasury to raise VAT instead of National Insurance
contributions
Cameron
ready to halt NI plans