LinkBack URL
About LinkBacks
Well, they certainly could profit from it.Originally Posted by TheAnimus
One way would be to use, as was suggested, a punitive rate of VAT.
First, implement another VAT band. Second, set the rate at something that stings .... say, 50%. Third, implement legislation that defines the product types that this band applies to ... such as cheap lager, and cheap beer. You could even define it so that it applies to binge brands but not to premium bottled beers.
Fourth, and here's the cute bit, it's the sellers that get to do the legwork of categorizing and collecting the tax. They have to work out which products the new rate appliers to and charge it accordingly. And it's relatively easy to do that. You simply have to add the new rate (call it B for Binge) to your accounting software, then go through your stock codes for the existing product range and change the VAT rate to B for any product that it affects, Your POS and accounting systems then do the rest for you, charging the customer, collecting the tax and remitting it to HMRC.
After all, we already have a differential rate system for VAT and this simply means adding new punitive rate. Simplez.
And that way :-
- prices go up, which will deter binge drinking if this technique were to work.
- the cost to the government is minimal, since the retailer acts as an unpaid tax collector and does all the legwork
- changing the punitive tax rate is as simple as amending one figure in the accounts software setup
It could all be done quickly, and the government would get the extra revenue, not the retailer, while the retailer does the work.
Reply With Quote
; Well you may not my friend but there's a whole swathe of society that likes a drink and a smoke to forget its problems, just for a short time, that's become today's whipping boy.
