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04/01/2011
VAT Hike Criticised As 'Counterproductive'
Sinn Fein's Economic Spokesperson has slammed this week's increase in VAT as the wrong way to address the UK's deficit.
Mitchel McLaughlin joined other critics and said that the increase will affect those who can least afford it, increase inflation and reduce overall growth.
The NI Independent Retail Trade Association (NIRTA) also said the rise from 17.5% to 20% was at a time when local retailers were already struggling.
The Chief Executive of NIRTA, Glyn Roberts, believes the rise in the rate of VAT will turn out to be completely counterproductive.
"I think this is a major mistake by the coalition Government at a time when we need to stimulate consumer demand," he said.
Stormont MLA Mitchel McLaughlin continued: "The increase in VAT for 17.5% to 20% is a further punitive measure from a Tory dominated coalition.
"It will reduce spending power of the consumer and will therefore affect any economic recovery while increasing inflation. It is another example of the mistaken economic policy of cut backs, rather than investment, to escape recession.
"The increase in VAT will really affect those who can least afford it by reducing money for the weekly grocery bill, it will add to already inflated home heating bills, and will increase fuel prices at the pumps to record highs.
"The raising of VAT is expected to bring in £13bn. However if the British government were really interested is addressing the burden that the banking system has placed on the budget then they should address the cause of the problem in the interests of wider society," he said.
Meanwhile, Upper Bann MP, David Simpson has said that the VAT hike unveiled by the Tory-Liberal government will have a negative impact on hard-pressed families and has the potential to devastate locally owned and run small businesses.
"The increase in VAT unveiled by the Tory-Liberal government represents a 14% hike in this particular regressive form of taxation and will hit the most vulnerable in our society."
Agreeing with his both his political opponents in Sinn Fein and the smaller businesses in NIRTA, the DUP politician said: "VAT is almost universally regarded as a regressive form of taxation. It particularly affects the poor and low paid. VAT is a Poll Tax that is applied at the same level to everyone regardless of their ability to pay. Lower income families who use weekly income for essentials like food and heat will be especially hit by this tax rise.
"Our business sector will also be hurt by this Tory-Liberal policy. I agree with NIRTA that this VAT hike is a major mistake and 'the wrong way to go'," said the DUP MP.
(BMcC/GK)
Mitchel McLaughlin joined other critics and said that the increase will affect those who can least afford it, increase inflation and reduce overall growth.
The NI Independent Retail Trade Association (NIRTA) also said the rise from 17.5% to 20% was at a time when local retailers were already struggling.
The Chief Executive of NIRTA, Glyn Roberts, believes the rise in the rate of VAT will turn out to be completely counterproductive.
"I think this is a major mistake by the coalition Government at a time when we need to stimulate consumer demand," he said.
Stormont MLA Mitchel McLaughlin continued: "The increase in VAT for 17.5% to 20% is a further punitive measure from a Tory dominated coalition.
"It will reduce spending power of the consumer and will therefore affect any economic recovery while increasing inflation. It is another example of the mistaken economic policy of cut backs, rather than investment, to escape recession.
"The increase in VAT will really affect those who can least afford it by reducing money for the weekly grocery bill, it will add to already inflated home heating bills, and will increase fuel prices at the pumps to record highs.
"The raising of VAT is expected to bring in £13bn. However if the British government were really interested is addressing the burden that the banking system has placed on the budget then they should address the cause of the problem in the interests of wider society," he said.
Meanwhile, Upper Bann MP, David Simpson has said that the VAT hike unveiled by the Tory-Liberal government will have a negative impact on hard-pressed families and has the potential to devastate locally owned and run small businesses.
"The increase in VAT unveiled by the Tory-Liberal government represents a 14% hike in this particular regressive form of taxation and will hit the most vulnerable in our society."
Agreeing with his both his political opponents in Sinn Fein and the smaller businesses in NIRTA, the DUP politician said: "VAT is almost universally regarded as a regressive form of taxation. It particularly affects the poor and low paid. VAT is a Poll Tax that is applied at the same level to everyone regardless of their ability to pay. Lower income families who use weekly income for essentials like food and heat will be especially hit by this tax rise.
"Our business sector will also be hurt by this Tory-Liberal policy. I agree with NIRTA that this VAT hike is a major mistake and 'the wrong way to go'," said the DUP MP.
(BMcC/GK)
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