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A poll conducted by the Federation of Small Businesses in February this year found that 97% of firms polled said the VAT cut had had "no impact at all." Exactly how is this evidence of the cut working? What about the costs to business in changing their prices to accommodate the VAT rate change?
The article says it boosted sales by £2.1 billion - about 10% of the cost of the VAT cut. Had an equal amount gone on a corporation tax cut it would have cut the rate to 1about 16% - not quite the stimulus the Irish economy gave itself but a major step that way.
Anonymous, that's one of the worst points I've ever read. VAT must always stay the same, because otherwise shops have to chnage their prices? Come on!
The bigger the cut, the bigger the boost to spending, no? But the lowest you can have VAT is 15%... under EU rules.