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Vat Should Be Imposed On Food And Children's Clothes


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A free market is supposed to work by price signals, different levels of VAT distort this, and send out false signals leading to a misallocation of resources. If there has to be VAT it should be at a uniform level on everything, no exceptions. Ideally if it's range was extended this would be a done in a revenue neutral way as to avoid increasing the overall tax burden (but that's highly unlikely given that it's politicians who make the decision).

Can you please tell me how putting VAT on kiddies clothes will stop a misallocation of resources? Do you think I'll over buy on kiddie clothes because there's no VAT on them? Are you seriously suggesting I'd buy more clothes if adult clothing didn't have VAT on them?

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They should increase the amount of things that are VATable - pringles should not be vat free. Fresh fruit, veg, nuts and seeds should stay VAT free.

If you shop at lidls supermarket they give you a print out with all the items which carry vat seperated out!

Pringles are vile (poisonous) M.S.G. ridden killers purposely exempted by Procter and Gamble as 'non-crisps'!

You should on see on websites what people reckon head and shoulders (hidden poison ingredients?) and their other products do to you! They constantly threaten the owners to get them to take the 'info' off!

Chocs, biscuits, crisps, booze etc and many other foodstuffs already have VAT applied!

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There ought to be 3 rates of VAT.

0% on basic essentials. The government ought to put together a standard basket of stuff and make it zero rated. That way everyone could feed and clothe themselves without paying VAT if necessary.

Then a further rate for standard goods and a much higher rate for luxury goods. For example no-one needs to spend over 30K on a car, so if all cars over 30K have VAT at 30% this tax is avoidable.

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Why not put VAT on rent. The BTL brigade are benefiting from low IR's so they should do their bit. I bet this would take a massive chunk out of the deficit

that would just put rent up by by what ever the rate will be + an administration fee.

Edited by Monkey
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The more they VAT the less we will spend....and no won't pop into the bank to borrow a wedge to keep in a way have been accustomed to....popping out for a bit, wake me up when it is all over. ;)

Not convinced. If the cost really matter eveyrbody would be buying in Tesco / Matalan / Asda as their clothes are a fraction of what you would pay in a high street shop and all the high street clothes shops would have closed.

The reality is that clothes and food are so ridiculously cheap these days, £4 for a pair of jeans for example, that VAT will not make a difference to the buying decision.

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Not convinced. If the cost really matter eveyrbody would be buying in Tesco / Matalan / Asda as their clothes are a fraction of what you would pay in a high street shop and all the high street clothes shops would have closed.

The reality is that clothes and food are so ridiculously cheap these days, £4 for a pair of jeans for example, that VAT will not make a difference to the buying decision.

No that's a illogical fudge

You are saying the price makes no difference to the buyer. If that's true, why is the price low in the first place?

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No that's a illogical fudge

You are saying the price makes no difference to the buyer. If that's true, why is the price low in the first place?

I buy as many clothes now as when they were more expensive 20 years ago. There are only a certain number I need each year. Unless they go up to a vast amount, £100 per pair of jeans for example, I will continue to buy at the same rate.

The price is so low that it does not matter to me if it goes up 20%. Price inelastic demand.

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Diesel being at 123p on average I wish i'd kept my old 55mpg Citroen, Tesco sell rapeseeed oil

for 84p a liter and have a BOGOF so only 42p!!. Saving 39-81p for every liter at the pump.

4.2.1 Exempt producers/users

If you have produced or used less than 2,500 litres of:

■any biofuel, or

■any other fuel substitute or additive

within the last 12 months, and/or expect to produce or use less than 2,500 litres in the next 12 months,

you are an exempt producer and do not need to register with us and account for duty. However, there

are simple record keeping requirements, which are described in paragraph 4.9.1.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent&id=HMCE_CL_000205&propertyType=document#P219_24727

Edited by Northwest Smith
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I buy as many clothes now as when they were more expensive 20 years ago. There are only a certain number I need each year. Unless they go up to a vast amount, £100 per pair of jeans for example, I will continue to buy at the same rate.

The price is so low that it does not matter to me if it goes up 20%. Price inelastic demand.

That's probably a mixture of your personality and your age ;) - the quantity demanded is not that unresponsive to price in clothing. Even in my short lifetime i have seen a fantastic change in this regard since the seventies; the vast majority of my clothes then were scavanged from jumble sales or handowns from cousins while now children are mostly dressed in clothes specificaly bought for them. However, this is a bit irrelevant to a broader point. Even if the demanded quantity is unresponsive to price, vat will still harm demand in other markets.

Edited by Stars
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The only reason they want to put VAT on kiddies clothes is because so many people scrape a few extra pounds selling them cheap on Ebay. VAT is a ghastly French invention, the idea being to force the exchange of goods and services to be visible to the all-powerful state. They give with one hand and steal with the other. Can't have the peasants making ends meet now can we.

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I buy as many clothes now as when they were more expensive 20 years ago. There are only a certain number I need each year. Unless they go up to a vast amount, £100 per pair of jeans for example, I will continue to buy at the same rate.

The price is so low that it does not matter to me if it goes up 20%. Price inelastic demand.

Jeans are a monopoly in the UK and Levi/Wrangler etc influenced the Eu so importers were not allowed to bring in grey imports.

I buy mine in the USA and pay the import duty.

Last time I looked Wrangler were doing buy two pairs get one free. You can buy jeans that cost £40-£70 a pair in the UK in Walmart or Tesco USA for £16.00

That's three pairs of Wranglers/Levis etc for £32.00!

We are utterly taken the piss out of in rip-off uk and it is NOT a free-market with Levi/wrangler protectionism going on either!

Edited by erranta
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Jeans are a monopoly in the UK and Levi/Wrangler etc influenced the Eu so importers were not allowed to bring in grey imports.

I buy mine in the USA and pay the import duty.

Last time I looked Wrangler were doing buy two pairs get one free. You can buy jeans that cost £40-£70 a pair in the UK in Walmart or Tesco USA for £16.00

That's three pairs of Wranglers/Levis etc for £32.00!

We are utterly taken the piss out of in rip-off uk and it is NOT a free-market with Levi/wrangler protectionism going on either!

Which is why I buy all mine at M&S....

If the label thing is important to people then the added cost will increase the kudos they feel from wearing them... ;)

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Which is why I buy all mine at M&S....

If the label thing is important to people then the added cost will increase the kudos they feel from wearing them... ;)

Ahhha but I'm old enough to remember when levi jeans etc were just something plumbers/tractor drivers/ordinary workers wore and were a "low cost" item that everyone could just replace cheaply as work wear - until they brainwashed the UK younger populations into thinking they were a 'luxury' fashion item, trebling the cost overnight, which also enabled the Govt to smack a luxury tax on them as well as import and vat duties!

Jean cloth in France etc is still something farm workers & council labourers wear!

Edited by erranta
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Ahhha but I'm old enough to remember when levi jeans etc were just something plumbers/tractor drivers/ordinary workers wore and were a "low cost" item that everyone could just replace cheaply as work wear - until they brainwashed the UK younger populations into thinking they were a 'luxury' fashion item, trebling the cost overnight, which also enabled the Govt to smack a luxury tax on them as well as import and vat duties!

Jean cloth in France etc is still something farm workers & council labourers wear!

True enough excellent marketing strategy though particular as 95% of the population never even noticed it. Branson has done pretty much the same for the Virgin brand..

Now only if Dave could introduce such a thing for the pain that is to come!!

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That's probably a mixture of your personality and your age ;) - the quantity demanded is not that unresponsive to price in clothing. Even in my short lifetime i have seen a fantastic change in this regard since the seventies; the vast majority of my clothes then were scavanged from jumble sales or handowns from cousins while now children are mostly dressed in clothes specificaly bought for them. However, this is a bit irrelevant to a broader point. Even if the demanded quantity is unresponsive to price, vat will still harm demand in other markets.

:angry: I am a stylish man about town I'll have you know. Well, no :unsure:.

I've just checked Tescos and they have men's wool suit trousers at £8. This would include VAT so say £6.50 without. These are small numbers. We don't buy a pair of trousers a week so it really doesn't add up to a big sum for an individual.

If it was a £20k purchase such as a car then VAT at 20% makes a big difference, but I just can't see it when the start price is so low.

Somebody who I would regard as fairly skint with two young kids buys takeaways and delivery pizzas (I'm not being disapproving by the way, she can do what she wants). She would just need to swap one of those for a home-prepared meal and would save a fiver which would pay for several weeks VAT on her family's clothes.

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Guest sillybear2

I disagree, after sending them down the coal mines and up chimneys their clothes quickly become tattered, and after 20 hours of hard labour they are often hungry for their rations.

So my view is; don't be cruel with the VAT.

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True enough excellent marketing strategy though particular as 95% of the population never even noticed it. Branson has done pretty much the same for the Virgin brand..

Now only if Dave could introduce such a thing for the pain that is to come!!

More like, paying off some bent Euro-parliament fraudsters to pass the anti grey-import laws in favour of the global jeans companies to keep their profits in the EEC massive!

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:angry: I am a stylish man about town I'll have you know. Well, no :unsure:.

Probably more stylish than myself

I've just checked Tescos and they have men's wool suit trousers at £8. This would include VAT so say £6.50 without. These are small numbers. We don't buy a pair of trousers a week so it really doesn't add up to a big sum for an individual.

If it was a £20k purchase such as a car then VAT at 20% makes a big difference, but I just can't see it when the start price is so low.

It's just a larger number of small purchases, but the same principle applies. An increase in price just increases the likelyhood that a person at any point will decide to make do or replace later because they have to defer more to get the clothes

What i think you may be arguing is that because clothes are presently cheap in real terms, the tax wont collect much and so wont do that much damage.

Somebody who I would regard as fairly skint with two young kids buys takeaways and delivery pizzas (I'm not being disapproving by the way, she can do what she wants). She would just need to swap one of those for a home-prepared meal and would save a fiver which would pay for several weeks VAT on her family's clothes.

So fewer pizza houses?

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Probably more stylish than myself

So fewer pizza houses?

More domino's collapse? :unsure:

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Tax

IMF suggestion or not, I'd bet that the list of VAT exclusions is going to shrink considerably over the next few years.

I think that this is a really bad idea.

EU rules require that once VAT has been added to a item, it cannot be taken off again.

It's a one way step to add VAT to food.

IMHO, if we really need this money, a far better move would be to increase standard VAT to 25% because that can be reduced back to 17.5% in a few years time.

tim

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