Tuesday, January 4, 2011
The real face of inflation 8%?
The cost of many goods and services will rise by more than three times the rate of the VAT increase as businesses use the tax to mask a more dramatic price review, leading industry experts warn today. The rate of Value Added Tax rose by 2.5 percentage points at midnight, from 17.5 per cent to 20 per cent â€“ an attempt by the Coalition to reduce the deficit. But analysts believe many gyms, mobile phone companies, restaurants and shops will raise their prices by between 5 per cent and 8 per cent, or possibly more.