Increase in VAT will punish those who dare to spend
IF you dare to spend, you will pay more tax on the products or services you buy. That was the clear message from the new economic review released by the Government yesterday.
The increase in the VAT rate is coming at a time when consumers are reluctant to spend. Those that have any spare money are saving, and saving hard.
For large numbers of others there is nothing spare in the household budget, so they cannot spend.