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  • Peter Normington

    January 16, 2009 at 11:49 pm

    nigel. I pay vat on vinyl, that’s hardly a luxury item is it?

    vat =value added tax, its a way to tax the conversion of goods and services so the end user pays a tax for the ammount of changes that occur in the manufacturing process, it has absolutely nothing to do with luxury, its just that some goods deemed as un-essential are vatable, and
    therefore the "luxury tax" came about, whereas in reality essential goods such as food were excempt or zero rated anyway