UKIP has today floated the idea of increasing VAT on luxury goods to 25%.
But in an amusing – if unsurprising – irony, UKIP doesn’t appear to have bothered to read Council Directive (2006/79/EC) which provides (see Articles 96 and 98) that Member States may only levy a standard rate of VAT and (in certain prescribed circumstances) lower rates. It’s simply not open to UKIP to impose a higher rate of VAT. Hungary has tried this in the past – but failed. “Investigating the feasibility” seems to mean, in UKIP speak, something less than a quick google search.
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