Member Article

Tax review urges overhaul on VAT

VALUE Added Tax (VAT) should be applied to most goods in the UK, a report by a leading think tank has said.

The move would reportedly simplify indirect taxation and raise money which could be spent on cutting income taxes and raising benefits, the Institute for Fiscal Studies (IFS) suggests.

Its report calls for radical reforms of the UK tax system.

The government called the review an “important contribution” and said it would consider the findings.

“The Government has already set out steps to simplify the tax and benefits system by setting up the Office of Tax Simplification, “ a Treasury spokesperson told the BBC.

“[It] is consulting on reforms to improve the tax policymaking process, as well as undertaking fundamental reforms to the welfare system, including the introduction of a Universal Credit.”.

This was posted in Bdaily's Members' News section by Ruth Mitchell .