The new figures released by the Office for National Statistics (ONS) in the report expose the lie the Conservative-led coalition government has been telling the British in the form of “we’re all in this together” mantra.
The ONS report partly blamed the tax scandal on millionaire George Osborne’s controversial decision to raise VAT to 20 percent in January 2011.
According to the report the duty on everyday goods such as food and fuel clobbers hard-up families more than the wealthy because the tax is paid at the same rate no matter how much people earn.
Shadow Treasury Secretary Chris Leslie said the figures were proof that Osborne’s VAT hike was a tax on the poor.
“What more evidence could anyone need that this government is piling higher costs on lower and middle-income households while cutting taxes for the wealthy?
“It just gives the lie that we are all in this together”, said Leslie.
The ONS report confirmed that indirect taxes like VAT “increase inequality”.
Unions said the figures showed the government should cut VAT rather than increasing the point at which people start paying income tax.
“Low-income families will gain virtually nothing from the increase in the personal allowance, but will continue to lose significantly from the rise in VAT”, said TUC General Secretary Frances O’Grady.
“Contrary to what ministers claim, the government’s tax policies are having a negative impact on the poorest households”, added O’Grady.
MOL/HE
Source Article from http://www.presstv.ir/detail/2013/07/16/314145/tax/
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