- MemberJanuary 17, 2009 at 12:05 amquote Nigel Hindley:
Sorry Nigel. Can’t agree with your luxury theory.
There was a time when VAT attempted to penalise luxury goods by taxing them at a higher level, 25% when standard rate was 12.5% as I recall, but that soon sank into disrepute and we reverted a single standard rate.
Nowadays, VAT is chargeable on absolutely everything, except certain items (children’s clothes, food etc) where it would have been politically unwise to apply it.
Energy (heating oil, gas and electric) used to be zero rated too, but they soon found a way around that. Even then they daren’t make it full rate, and only taxed it at a lower 8% level.
Surely even the dimwits in government couldn’t think that adult clothing is a luxury when they accept that children’s is a necessity.
Find answers, ask questions, connect with our community.