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June 22Nd Vat On Food?

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If they put VAT on food it would give them a massive income?

Do any other countries have VAT on food?

Almost every other EU country has VAT on food. Usually at a lower rate than their normal VAT.

tim

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Given the deflationary forces at work and the cut throat competition and non-pricing power of supermarkets, I can seriously see any VAT on food being wholly absorbed by Tesco, Sainsbury's et al.

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VAT on food does what to aggregate demand?

You merely reduced expenditure on other items.

There must be a tipping point though? I am not a particularly good shopper since I don't usually bother checking prices, but I do think that food is quite cheap in relation to the rest of normal shopping. The times when the bill jumps up is when toiletries and cleaning products get included. Sorry, this is getting a bit mumsnet!

I suppose the govt could just stick VAT on everything, but I don't think they are brave enough for that! As someone posted already, in other countries there is VAT or sales taxes on pretty much everything, but not at the rate of UK VAT. People would eventually get used to paying it, but the sudden shock of 17.5% (or more likely 20%) VAT on things that were not taxed before might lead to social unrest.

In the 90s there were riots over the poll tax, which was a new tax of roughly £800-1000 per year per household. For my family of 3 the Tesco bill is about £400 per month, so a VAT hike of 20% would be an extra £80 per month. Do we buy less stuff or riot in the street?

I am curious to see how much more taxation people will stand for, particularly if they feel taxes have been used to bail out banks, pay MP's dodgy expenses and pay civil service fat cats. And this is compounded by the public service cuts that are on their way.

Some taxes seem more in your face than others. Income tax almost becomes a background tax, but every time petrol goes up it is immediately noticed, likewise beer, fags, and especially food. I don't think this govt is brave enough to put VAT on food, although, it might help with the obesity epidemic! :)

QB

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If they put VAT on food it would give them a massive income?

VAT on SOME foods would kill 2 or 3 birds with one stone. A lot of 'food' is just plain junk and is killing people and costing the NHS a fortune. Taxing crisps but not potatoes isn't rocket science is it? Any kind of water/sugar drink could also be taxed.

Also, food tax should only be for the large supermarkets, this would give small shops a chance of survival.

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if they was going to do it, they may as well just do 1%. it'd raise a hell of a lot of tax and people probably wouldn't riot over it.

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There is already VAT on some food items.

It's about time it was rationalised. Remember the dust-up with HM Customs about whether Jaffa Cakes were cakes (no VAT) or chocolate biscuits (VATable)? There does seem to be anrgument for ALL "manufactured" foods being VATable, leaving just raw staple foods VAT free. By raw staples I mean fruit, veg, flour, meat, fish; and though it's not raw, I suppose bread. if it discouraged junk food eating any loss of revenue would probably be recoupled in lower medical costs.

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VAT on SOME foods would kill 2 or 3 birds with one stone. A lot of 'food' is just plain junk and is killing people and costing the NHS a fortune. Taxing crisps but not potatoes isn't rocket science is it? Any kind of water/sugar drink could also be taxed.

Also, food tax should only be for the large supermarkets, this would give small shops a chance of survival.

There is already 17.5% VAT on crisps.

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There is already 17.5% VAT on crisps.

In that case it's not high enough then!

Have you noticed that the fat people in supermarkets almost invariably have multi-packs of crisps in their trollies!?

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I hope not! food has already jumped up in price, some Items I used to buy have jumped up in price by 100% over a short period of 2-3 years. If the government start taxing food, the tax will no doubt stay forever.

Edited by blobby o mr blobby

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They should whack a huge tax on all unhealthy shit and change people's habits

Define unhealthy foods, who gets to decide?

I think we'll see massive tax increases on alcohol. Get your stockpiles in ;)

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Guest absolutezero

There must be a tipping point though? I am not a particularly good shopper since I don't usually bother checking prices, but I do think that food is quite cheap in relation to the rest of normal shopping. The times when the bill jumps up is when toiletries and cleaning products get included. Sorry, this is getting a bit mumsnet!

I suppose the govt could just stick VAT on everything, but I don't think they are brave enough for that! As someone posted already, in other countries there is VAT or sales taxes on pretty much everything, but not at the rate of UK VAT. People would eventually get used to paying it, but the sudden shock of 17.5% (or more likely 20%) VAT on things that were not taxed before might lead to social unrest.

In the 90s there were riots over the poll tax, which was a new tax of roughly £800-1000 per year per household. For my family of 3 the Tesco bill is about £400 per month, so a VAT hike of 20% would be an extra £80 per month. Do we buy less stuff or riot in the street?

You buy less stuff.

People tend not to riot these days. They come on an internet forum and moan and then go back to watching Coronation Street.

Sorry, but that's how it is.

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I hope not! food has already jumped up in price, some Items I used to buy have jumped up in price by 100% over a short period of 2-3 years. If the government start taxing food, the tax will no doubt stay forever.

I remember a couple of years ago there was the threat of a rice shortage due to a bad harvest. consequently the price of rice did rise significantly. The following year, did the price come down? Did it ******. Anyone seen the price of PG tea bags recently, ******in' 'ell.

Bring on the VAT, I will be able to actually tighten my belt as well as metaphorically.

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Guest Noodle

I am not a particularly good shopper since I don't usually bother checking prices

QB

I'm going to spank you.

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Guest absolutezero

I'm going to spank you.

Will you spank me while you're at it?

Good to see you back, Noodle. :)

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Guest Noodle

Will you spank me while you're at it?

Good to see you back, Noodle. :)

I need to turn the barrel into a six pack before you'd let me dear.

I have no concept of time up here, only just twigged it's June. No idea of the date. Is it Monday? The suns starting to go down so I guess it's late afternoon.

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Guest absolutezero

I need to turn the barrel into a six pack before you'd let me dear.

I have no concept of time up here, only just twigged it's June. No idea of the date. Is it Monday? The suns starting to go down so I guess it's late afternoon.

Sunday 6th June 2010. It's 12.07pm here.

Edited by absolutezero

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Define unhealthy foods, who gets to decide?

Nutritionists? The NHS must have thousands of them, let them have a vote on it!

I would say tax Coca Cola but not pure orange juice for example. Many would disagree....

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Taxing crisps but not potatoes isn't rocket science is it?

Indeed not, but it has resulted in some expensive legal disputes...

'Appeal judges decide Pringles are potato crisps':

http://www.telegraph.co.uk/news/uknews/law-and-order/5355898/Appeal-judges-decide-Pringles-are-potato-crisps.html

Food products are usually zero-rated for VAT, but one of the exceptions is the humble potato crisp.

The VAT Act 1994 singles out the snack for tax purposes with the words:

"Any of the following when packaged for human consumption without further preparation, namely, potato crisps, potato sticks, potato puffs and similar products made from the potato, or from potato flour, or from potato starch, and savoury products obtained by the swelling of cereals or cereal products; and salted or roasted nuts other than nuts in shell."

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I don't mind what they tax, so long as they stay the hell away from my parma ham, vine tomatoes and freshly squeezed orange juice.

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I don't mind what they tax, so long as they stay the hell away from my parma ham, vine tomatoes and freshly squeezed orange juice.

All three could become much cheaper when some of the Med. countries are out of the euro.

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  • 152 Brexit, House prices and Summer 2020

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