Shops not increasing VAT straightaway

Destroyer

POUNDLAND are holding at 15% VAT

Destroyer

RufusA wrote: »

Unless of course some unscrupulous retailers are using the VAT rise as an excuse for bumping up their prices by more than the VAT amount.

Rufus.

I can remember some of these retailers dragging their feet passing on the 2.5% VAT drop in the first place, just like the banks who havent passed on the drop in interest rates to those with mortgages but have with those with savings ??

2010

Some shops might not be increasing just yet but I see the petrol prices have already been whacked up 2p today.

zildjian

I don't get the big deal with it. I mean if i was buying a car or something very expensive yes, it would make a significant difference. But for the most part people relate it to retail shops on here.

I saw pc world offering microsoft office for £60 or something. with Vat Freeze. Thats really saving me a pound, roughly. Hardly enticing.

Is it only me that is thinking this way and getting anoyed?

2010

zildjian wrote: »

I don't get the big deal with it. I mean if i was buying a car or something very expensive yes, it would make a significant difference. But for the most part people relate it to retail shops on here.

Correct,we`re talking an extra £2-50 for every £100.
I could never see the big deal in the cut in the first place.
Probably go up to 20% after the election!

neildwattam

I'm the same as you, Its something like £2 in every £100 that you would be paying extra. Hardly worth worrying over.

Personaly i think the hole VAT issue was a joke when they said it would save us money, some did the first day, only to draw customers in as a marketing ploy, after it became old news they stopped passing the savings on really.

For example just look at any item that was priced before and after the VAT drop £xx.99p. A dvd or game would be a good example as there prices structure has always stayed the same, and i expect it to stay the same now.

I remember my Netbook Samsung NC10 i purchased a month before this happend £329 from Dixons Digital. When it dropped to 15% VAT i noticed the price droped a few quid. But it then soon rose back to the original price £329 as the FAD wore off.

The only companys i really noticed it stay was if you had a mobile contract etc.

ic

I agree - there was a flurry of price drops initially with shops harping on about how they were passing on the cut, but within a month or two the prices began rising again back to "round pound value" and £x.99 prices. So shops got good press about passing on the cut, now the same shops can say they're not passing on the rise - after all they've been raking in the extra money for the past ten months or so. Behind the scenes they're now losing that boost.

Destroyer

2010 wrote: »

Some shops might not be increasing just yet but I see the petrol prices have already been whacked up 2p today.

The price of a litre of fuel in the UK is a disgrace without further increase. Its not even as if any of this money goes back into the roads either, especially when it snows.

neildwattam

Fuel is a Joke.

First they slap there duty on it, and then VAT on top.

from 2008-12-01 to 2009-12-31, is also charged on the price of the fuel and on the duty. At a pump price of 90.0p/litre (typical for petrol in mid December 2008), this would put the combined tax at 62.09p/litre, or approximately USD$3.49 per US gallon. Thus without tax, the retail price would be 27.91p per litre, making a combined tax rate of 222%.

zildjian

2010 wrote: »

Correct,we`re talking an extra £2-50 for every £100.
I could never see the big deal in the cut in the first place.
Probably go up to 20% after the election!

I can see the big deal for businesses who make substantial orders. Which is fair enough, and i think what it was probably mainly introduced for. But the marketing ploy by retailers, to me, is hilarious. People are clearly falling for it!