Brussels wants to impose VAT on food & children’s clothes
The European Commission is trying to harmonise VAT rates across its member countries. In so doing it wants the UK to fall in line with a rate of at least 5% on food and children’s clothing.
When it joined the EU in 1973 the UK had fought very hard not to have to charge VAT on such items (as well as the printed word, e.g. newspapers) and, as a concession to Brussels it had agreed to impose a ‘zero rated’ level of VAT. That way, VAT was effectively levied but at a valueless rate. Now Brussels wants the zero rate to be scrapped and replaced by a rate of 5% minimum, for certain products including nappies, for example.
The labour Government will fight to retain the zero rate and can use its veto if required. If successful, UK families will save a staggering £28 billion each year.