Budget response: VAT rise delay is appropriate, says CIOT

Budget response: VAT rise delay is appropriate, says CIOT

Budget response: VAT rise delay is appropriate, says CIOT

The CIOT agrees with the Chancellor that the right time to increase VAT is in the New Year.

John Whiting, CIOT Tax Policy Director, said:

“Putting to one side the impact on the economy, waiting until January allows business time to prepare and get its pricing right. This is an important lesson from the practical problems caused by the immediate VAT cut of a couple of years’ ago.

“Leaving the change until 4 January, instead of 1 January, will allow the hospitality sector to manage New Year’s Eve without concern over a change on New Year’s Day.”

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Notes to Editors

1. The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.

The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.

The CIOT’s 15,000 members have the practising title of ‘Chartered Tax Adviser’.

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George Crozier
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