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Author Topic: Where did the extra 2.5% vat tax go to?  (Read 280 times)

Bowdon

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Where did the extra 2.5% vat tax go to?
« on: February 09, 2017, 02:27:08 PM »

I bought my new monitor last week and noticed I paid 101 tax on it at 20%.

One fifth of any vat'able item price is now tax! Yet we still hear on the news how the NHS is struggling for funding. How councils are having to put up council tax. Services suffering.

Yet I've heard nothing about the 2.5% tax increase that happened!? Where did the money go, and continue to go!?
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gt94sss2

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Re: Where did the extra 2.5% vat tax go to?
« Reply #1 on: February 09, 2017, 02:32:22 PM »

The VAT rate changed to 20 on 4 January 2011.

As to where it went - the budget deficit?
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Ronski

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Re: Where did the extra 2.5% vat tax go to?
« Reply #2 on: February 09, 2017, 03:46:06 PM »

I think the question is Bowdon,  where have you been for the last six years?   ;)
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renluop

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Re: Where did the extra 2.5% vat tax go to?
« Reply #3 on: February 09, 2017, 03:47:19 PM »

To be pedantic, it's one sixth of the price one buys at is tax. Moreover any offers to sell at non-VAT prices is a lie.That reduced price includes tax.
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Bowdon

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Re: Where did the extra 2.5% vat tax go to?
« Reply #4 on: February 09, 2017, 04:51:28 PM »

I think its because I was buying a big value item that the tax rate slapped me around the face :D

Before I bought that and listening about how under invested our services are these days I was wondering why we couldnt all be taxed 1% more and that would solve a lot of the immediate cost crisis. Then seeing the 20% VAT I got to wondering what happened with the additional money they raised when they increased VAT by 2.5% ? It seems to have vanished down a black hole.

It's sad that the governments of all parties seem to be selling the silver to pay debts off, or selling industries to private companies, so there are less and less ways for the government to make money. It all seems to rest now on taxing us. It's no wonder our taxes are increasing, and will continue to do I think.

The government needs to start investing in some kind of profitable nationalisation, so they can make the products (creating jobs), and sell the products to make profit.

On an aside note, I wonder how BT would have progressed if it was still nationalised? There was obvious profit there because of the amount BT get (they are making so much profit they can afford to be buying tv sports rights). All that money could have been going back in to the country and taken the tax burden off us. Though on the flip side, I'm not sure if broadband would have progressed at the rate it is doing now, or better or worse.
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gt94sss2

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Re: Where did the extra 2.5% vat tax go to?
« Reply #5 on: February 09, 2017, 05:53:37 PM »

I'm pretty sure that one of the reasons why BT was privatised in the first place was because the government at the time wasn't willing to allow BT sufficent funds to invest in its future (digital exchanges etc)
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Ronski

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Re: Where did the extra 2.5% vat tax go to?
« Reply #6 on: February 09, 2017, 06:02:16 PM »

Remember that any business contributes to the Government tax income, there's corporation tax, tax their employees pay on wages, tax on goods sold, the list is probably endless.
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