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Raise VAT rather than imposing 'tax on jobs', PDF Print E-mail
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Latest Recruitment News - Mature Aged Recruitment News
Written by DirectNews Feed   
Friday, 05 March 2010 00:00
Raise VAT rather than imposing 'tax on jobs',Broadening the scope of VAT has been cited as a possible solution to help people looking for 40-plus jobs while also boosting government earnings.

In a bid to reduce the UK's fiscal deficit, the government has proposed implementing a one per cent increase in National Insurance contributions, something which business groups have described as a "tax on jobs".

Experts have warned that hiking the cost of employing staff could lead to a drop in recruitment activity, making it harder for people to find 40-plus jobs.

But independent thinktank Reform has instead called for Whitehall policymakers to cut VAT exemptions for everyone apart from UK households with an income of less than £17,000 per year.

Director of Reform Andrew Haldenby warned all three major political parties against proceeding with their plans to impose "job-killing taxes on employment and growth".

He added: "If politicians can find the courage to eliminate zero-rate exemptions in VAT, they can cut taxes on jobs while still reducing the deficit."

Posted by Daniel FrostADNFCR-3012-ID-19653445-ADNFCR
 

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