Re: Pre-budget report

On 25/11/2008 07:47, shaz wrote:
"Ali" <ali.on_usenet@xxxxxxxxxxxx> wrote in message news:Xns9B6161791DBE314159265358@xxxxxxxxxxxxxxxxxx
On Mon, 24 Nov 2008 17:09:20 GMT, wtwjgc (Joe) commented

He's also dropped VAT to 15% from 1/12/08 until 31/12/09, then
it's back up again.
I wonder by how much purchases drop for the rest of November?
Why buy now when the price is dropping on Monday?
The prices will not drop on Monday. I have been listening to retailers on the radio. The large retailers say that it will enable them to make more discounts but not drop prices in general. The smaller retailers say that it will cost a lot to change the accounting system and labels for a price reduction of 1p or 2p. It will instead help them perhaps to make a profit. As my hubby says all the games etc he has in stock at the moment he has paid VAT of 17.5% and if he drops prices on Monday he will make a loss. The shop is not making a profit and some weeks there is not enough for him and 2 sons to have their wages. Now perhaps if the duty on fuel had been changed then a lot of prices would come down. VAT does not affect food prices which is where the majority of us are finding rising prices, and gas etc of course. It sounds good doesn't it!!! Vat down. Pensioners extra money but not til after Christmas so don't rush out to buy your turkey. Children's benefit up but not til after Christmas so Johnny can wait for his new bike. But the nitty gritty is we will not see a much benefit if any. Oh I forgot I am getting my £10 before Christmas so I can get my turkey, but then my son needs help to pay his mortgage so perhaps not.
I feel like a right Scrooge today. But never mind I have a £2 coupon for the co-op and 50p off a dozen eggs and a loaf of bread. We shall not starve!!!!!
I bet those Westminster clowns are not worrying about their mortgages and turkeys.


It shouldn't make any difference to retailers. VAT (at various rates) they pay for supplies and services is claimed back and offsets the VAT (at various rates) they collect on behalf of Government.
The Treasury loses, not retailers.
When prices increased die to change in VAT rate businesses managed to implement that without problems. What's the difference?
Most good accountancy software allows for variable levels and rates of VAT.
Changing price labels on goods doesn't matter. It's what the customers pay that is the issue. Retailers that don't drop the prices will soon find they are losing customers to those that do. Had petrol been involved, the new prices would be in force on the stroke of midnight on 1st December.

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wtwjgc (Joe)
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