Wednesday, April 14, 2010

VAT on food

When I was a kid Purchase Tax was replaced by VAT. VAT was sold to the public as a tax on luxuries. It was also a much more complicated regime (more Customs & Excise jobs there!)

Many years later (at election time), there are rumours of VAT on food. This would be wrong for all sorts of reasons. But...

How about VAT on processed food? It's generally true that if you cook from raw ingredients then the food is both better for your body and wallet. You just need to find a bit of time. So VAT on processed food would:
* tax what is, in most respects, a luxury
* encourage people to cook food again
* improve diet
* raise money
* allow taxpayers to make an *informed* choice to buy a luxury and pay some tax to help our parlous finances.

Comments here please
(although apologies for moderation - been spammed by Chinese font comments)