6.5 million unaware of VAT hike
Share
Over 6.5 million people remain unaware of Government plans to hike VAT in the New Year, research shows.
Chancellor George Osborne confirmed he would impose a 2.5 per cent rise in the commodity tax, from 17.5 per cent to 20 per cent, in the Emergency Budget on June 22. The new levy will take effect from January 4, 2011.
However, a survey of 1,030 people conducted by TNS Omnibus reveals 13 per cent of the UK population are in the dark about the upcoming change.
Business development manager Bob Salmons says: “Our research suggests that consumers are not rushing out to shop before the VAT hike is introduced, despite the fact that a rise to 20 per cent will result in significant cost increases, particularly on higher priced goods.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (4)
PensionMan | 29 Dec 2010 2:59 pm
These 6.5 million must not read newspapers or watch TV.
How can they not know that VAT is increasing - its been in the news for months!
Unsuitable or offensive? Report this comment
John Blackmore | 29 Dec 2010 4:13 pm
Not sure what all the fuss is about.
A TV costing £1,000 + vat costs £1175 today and £1200 in a few weeks.
If the consumer can afford the £1,000 the extra £25 is not going to put him off buying. Shopping around will almost certainly cover this extra £25 and more.
When vat went down from 17.5% to 15% the Media said it wasn't worth talking about. When vat went back up to 17.5% the Media said the world would end.
Unsuitable or offensive? Report this comment
zahid | 30 Dec 2010 0:54 am
if they need increase the tax....need to increase the benefits for people
Unsuitable or offensive? Report this comment
Julian Stevens | 11 Jan 2011 4:02 pm
And to think these people have the vote! It reminds me of when a character in Corrie was written out for a few weeks so the actor who played him could go on holiday.
Subsequently written into the script was news that he'd been involved in an RTA in Bristol.
The following week, the Bristol Royal Infirmary was indundated with flowers addressed to the Corrie character.
Hence, I never watch soaps.
Unsuitable or offensive? Report this comment