Few set to pass on cut in VAT
Published Date:
01 December 2008
ONLY a quarter of small businesses said they would pass on the 2.5 per cent VAT cut to their customers, according to a survey.
Unicom, a business-to-business telecoms provider, asked 308 UK-based small businesses if they would drop their prices by 2.5 per cent as a result of tax reduction.
Only 26.3 per cent said they would and nearly a half said they would not. And 26.95 per cent said they had not yet decided.
Chris Earle, operations director of Unicom, said: "Most small businesses do not believe the cut in VAT will help them.
"In many instances they're saying it's not that they won't pass the saving on, it's that they can't pass the saving on because it could be a revenue lifeline.
"Most small businesses felt that a 2.5 per cent cut in their prices would barely be noticed, especially on items that cost just a few pounds or pence.
"They felt a cut in income tax would put money in everybody's pocket and would be far more likely to have a more direct effect – and, of course, increase revenue for small businesses."
The full article contains 201 words and appears in Evening Courier newspaper.
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Last Updated:
01 December 2008 9:09 AM
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Source:
Evening Courier
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Location:
Halifax
