Wednesday, January 7, 2009

Wondering where your 2.5% VAT saving has dissapeared to?

Just ask one of the many high street shops across the country which have now dissolved the customers' 2.5% saving back into the original cost of their goods. Stores are now saving 2.5% on their VAT, and gaining another 2.5% from the customer, who instead of paying £9.75 for a CD are paying the pre-VAT cut of £10.00. We ridiculed the government for the measly offering of 2.5%, which would give pennies back in the pockets of the people who were spending frugally, the people who needed a bigger gesture. But for large companies who are reaping the benefits of gaining 5% in the pre-Christmas and January sales, they are thanking Darling for yet another generous gift to big business in the UK.