The United Kingdom increases VAT
- on 06.23.10
- blog, corporations, occupation, plans, tidings
- Comments Off
- Digg
- Del.icio.us
The British finance minister George Osborne said on Tuesday that Parliament would pass the VAT from 17.5% to 20% from next January in the United Kingdom, a measure that will bring 13 billion pounds per year (15.6 billion euros).
A tax on the turnover of banks
The minister, who presented a budget "emergency" and austerity he called "inevitable", said that this and other announced at the same time, were intended to undo the deficit structural (not related to the conditions) in five years.
Among other tax measures, Mr.Osborne also announced, without waiting for the rest of the world, the introduction in January 2011 of a tax on the turnover of the banks, intended to raise two million pounds per year.
The tax on capital gains will also spend 18% to 28% from midnight.
Lowering the corporate tax
However, he intends to lower a percentage point per year for four years until the 24% corporate tax currently 28%, and increase of £ 1,000 tax allowance for 23 million of taxpayers paying the lower tax bracket (20%), allowing them to save 170 pounds each. He regarded as "the burden would be equitably shared."
Mr.Osborne said he hoped to spend the country's public deficit of 149 billion pounds (179 billion euros) this year (an improvement over the 155 billion provided last week by the Office for fiscal responsibility – OBR ) to 20 billion in 2015/16.
As a percentage of gross domestic product, this deficit will rise from 10.1% of GDP this year (2010/11) to 1.1% of GDP by 2015/16. The structural deficit, for its part would be reduced to nil in five years, he hoped. The Minister also said growth in the light of this budget would be more than 2.6% next year as the OBR had said last week, but 2.3%.