was it, when VAT was first inroduced it was 7.5%?

Question

why is it now 17.5%?

or are da uk people being shafted?

xxx

Answer 1

The UK is, indeed, being shafted. partly that is because of Europe but how many people remember Sir Geoffrey Howe (as he then was) delivering the budget speech one year. Then the rates of VAT were 8% and 12% on luxury goods. Good old Sir Geoffrey stood up and said this was too complicated so he was creating one rate to make things simpler. He fixed the rate at 15%. Very simple and very lucrative.

One should not forget that higher VAT is a consequence of lower income tax rates. Remember the 102% marginal tax rate under Labour?

Answer 2

Initially 10% [April 1st 1973]. We pay more now so that we can pay less Income Tax with the idea that Britain will work better and get the services we need.

But we clearly do not pay enough tax or ensure that everyone pays what they really should. It would shock you to know that there are some people who fill in false returns under declaring their tax!