THE Government's plan to levy VAT on new housing has attracted controversy.
Marc Adams of the Housebuilders' Federation was quoted, on October 21, as saying this would "damage the housing market across the board".
Although billed as a move to protect the countryside, this is contradicted by another plan which would release maybe millions of acres of agricultural land for development!
There is a more likely explanation.
The last Labour Government gave the EU (EEC) powers to set Britain's VAT rates in exchange for a temporary stay of execution.
As the EU now wants VAT harmonisation to complete the Single Market, it has asked for plans to be in place by 2001. The list of items affected is truly horrific: books, newspapers, children's clothing, food in shops, financial services, social housing and public transport fares.
To stem the switch to private transport, this will mean even higher rises in other taxes which, coincidentally, are planned in the name of helping the environment!
Can the Government please come clean as to how much extra we will all have to pay as the price of being in Europe?
For more information on developments, please contact me at the address below.
Dr Peter Gardner, AMBCS,
PO Box 13199,
London SW6 6ZU.
E-mail: newalliance@excite.com
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