Home / Knowledge / News / Govt should delay reintroduction of VAT rates, BRC
Govt should delay reintroduction of VAT rates, BRC
09
Mar '09
The Chancellor should use his Budget to announce he will delay the VAT increase by a least a month from its current due date of 31 December, said the British Retail Consortium (BRC).

The retailers' organisation is warning Alistair Darling he has chosen the worst possible time of year to impose the huge task of reversing last year's VAT cut. December is the busiest period for most retailers. It cost the sector around £90 million to implement the cut to 15 per cent and, because of the timing, will cost a similar amount to reintroduce the 17.5 per cent rate.

The call to delay the VAT increase is part of the 'Turning the Corner' recovery plan contained in the BRC's Budget submission, which is published (Monday).

The BRC is also calling for an immediate freeze of new business rates burdens, as part of a package of measures to preserve and promote retail opportunities.

Stephen Robertson, BRC Director General, said: “Retailing is facing the toughest trading conditions in decades, with predictions of 15 per cent of shops closing and up to 200,000 job losses.

“Retailers don't want handouts, but we can't cope with increasing Government-imposed handicaps. Retailing is at the heart of every local community, providing one in nine UK jobs. The Government must work with us to protect these jobs and promote new opportunities.”

Postponing the reintroduction of the 17.5% VAT rate
Despite less than a week's notice at their busiest time of year, retailers worked extremely hard to ensure the VAT reduction was passed onto customers on time.

It cost the industry around £90 million to make the changes last December. It will cost a similar amount to change the rate back to 17.5 per cent this December - again at the busiest time of year for most retailers and when the economy is unlikely to be in significantly better shape than now.

To minimise the disruption and confusion, the BRC is calling on the Government to postpone returning VAT to 17.5 per cent by at least one month to the end of January 2010.

Stephen Robertson, BRC Director General, said: “Changing VAT rates back to 17.5 per cent at the end of December will soak up a lot of effort at the busiest and most important time of year for most retailers. For some shops post-Christmas sales are 50 per cent above normal – so it's a time when staff should be focusing on serving customers. Re-pricing is very labour intensive. The need for overtime and bank holiday working will make it a costly distraction for retailers. The Government should postpone the reintroduction of the 17.5 per cent VAT rate by at least a month.”


Must ReadView All

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Global growth to pick up in 2017 and 2018: IMF

The pickup in global growth anticipated in the April World Economic...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X