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

Uzbekistan, S Korea to launch textile techno park in Sept

Textiles | On 19th Feb 2018

Uzbekistan, S Korea to launch textile techno park in Sept

Uzbekistan and South Korea plan to launch a modern textile techno...

Hyosung to invest Rs 3,000 cr in Maharashtra spandex unit

Textiles | On 19th Feb 2018

Hyosung to invest Rs 3,000 cr in Maharashtra spandex unit

The largest global spandex producer Hyosung Corporation of South...

Courtesy: VF Corporation

Apparel/Garments | On 19th Feb 2018

VF Corp Q4 revenue climbs 20% to $3.6 billion

The revenue of VF Corporation, a global leader in branded lifestyle...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marcel Alberts
Eurofibers

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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

February 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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

Yes No

Active Poll

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

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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

Yes No

Active Poll

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

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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

Active Poll

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

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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