Vat Cut & Iom Govt Income

[Sebrof]

How many taxpayers do we have that fall into that category, anyone know?

 

John Wright recently said 49. 500 had been hoped for.

 

S

[manshimajin]

Does any know how much VAT we raise on the Island compared with what we get back through the Common Purse Arrangement? Presumably significantly more - otherwise why have it?

 

I heard this a.m. that the VAT decrease would probably last about 6 months. If we lose £50 million p.a. we are looking at £25 million. A lot (I'd settle for 5%) but if it is only a 6 month blip the Government could respond by deferring expenditure on projects and by delaying PS salary reviews for 6 months?

[pongo]

..... and by delaying PS salary reviews for 6 months?

 

I hope that for the foreseeable years ahead nobody is going to be getting a salary increase other than via promotion - not the public sector, not the private sector.

 

Given a possible VAT decrease, falling prices and economic deflation, there might soon be an argument for pay decreases.

[Slim]

..... and by delaying PS salary reviews for 6 months?

 

I hope that for the foreseeable years ahead nobody is going to be getting a salary increase other than via promotion - not the public sector, not the private sector.

 

Given a possible VAT decrease, falling prices and economic deflation, there might soon be an argument for pay decreases.

 

Manx October inflation is 6.2%, 2.1% in the uk.

[Albert Tatlock]

Given a possible VAT decrease, falling prices and economic deflation, there might soon be an argument for pay decreases.

Surely pay decreases would further fuel deflation. It's how you get out of the deflation spiral that's important, and deflation is caused by over supply and lack of money and credit in the system - take even more money out of the system via pay cuts and...hey presto, more deflation.

 

As I see it, the cut in VAT effectively adds more money into the system, providing a discount (or effective price cut for consumers) whilst helping the price of goods to remain the same longer. It's only a loan (less take) from the government to the economy, that we'll have to make up later in additional taxes when the going gets good again.

[Slim]

As I see it, the cut in VAT effectively adds more money into the system, providing a discount (or effective price cut for consumers) whilst helping the price of goods to remain the same longer. It's only a loan (less take) from the government to the economy, that we'll have to make up later in additional taxes when the going gets good again.

 

Yep, I read somewhere that the most likely outcome was a raise to 20% in a year to counter.

[pongo]

Manx October inflation is 6.2%, 2.1% in the uk.

 

Not disagreeing but adding that: the UK figure would be an average across the entire jurisdiction. There would certainly be areas of population, perhaps comparable to the IOM, where the figure would more or less than the UK average.

 

Obviously there will always be an infinite number of subjective ways of looking, and looking again, at statistics and averages.

[x-in-man]

Reduce VAT on heat and light bills.

 

Reducing raw materials cost means reduced consumer costs means reduced VAT returns means less of a hole to fill means more money in everybodies pocket.

 

45% tax hike for high earners may mean companies seeking a low tax environment to register and run their business from, which may mean more income for our Gov. increasing VAT returns as our economy grows.

[When Skies Are Grey]

As some man in a suit pointed out on the news this morning...if shops slashing 10, 20 or 50% of their prices isnt bringing punters through the doors then what effect with a minor cut in VAT have....

[Slim]

Reduce VAT on heat and light bills.

 

Domestic fuel and power is already at a reduced rate, so isn't affected.

 

Reducing raw materials cost means reduced consumer costs means reduced VAT returns means less of a hole to fill means more money in everybodies pocket.

 

What raw materials? Foods already zero rated. Manufacturers don't pay vat on raw materials. Not sure how this helps, a game is priced at 39.99 because that's what the market will pay, nowt to do with vat. You drop the vat to 15% and games will (probably) still be 39.99, the shop will just keep the difference.

 

45% tax hike for high earners may mean companies seeking a low tax environment to register and run their business from, which may mean more income for our Gov. increasing VAT returns as our economy grows.

 

Yes, which is another reason we're under the spotlight. Raising taxes on high net worths is good news for us. But of course, this doesn't affect the seriously very rich, they'll already have tax avoidance plans in place, this affects the well off, who probably wont relocate.

[x-in-man]

Raw materials for energy generation.

 

Oil is dropping faster than a Peel girls knickers, reduced generation costs is what I was on about. This leads to reduced cost to the consumers = less VAT raised as a % of the house hold bill, hence less VAT in returns.

 

IF VAT was reduced on heat and light everybody gets more cash in their back pocket.

 

Remove VAT on heat and light bills outright then and sod the EU rules with regrads VAT on energy bills?

[Slim]

raw materials for energy generation.

Oil is dropping faster than a Peel girls knickers, reduced generation costs is what I was on about.

Remove VAT on heat and light bills outright then?

 

Businesses don't pay vat on anything used to make vat-liable sales, so it's not applicable there either.

[x-in-man]

raw materials for energy generation.

Oil is dropping faster than a Peel girls knickers, reduced generation costs is what I was on about.

Remove VAT on heat and light bills outright then?

 

Businesses don't pay vat on anything used to make vat-liable sales, so it's not applicable there either.

 

Im not talking business here - Im talking about Mr and Mrs J Public and their domestic energy bills.

 

The very poeple business wants spending cash in the High Street.

[Slim]

Im not talking business here - Im talking about Mr and Mrs J Public and their domestic energy bills.

 

The very poeple business wants spending cash in the High Street.

 

Right, this is circular. As I said, domestic energy is already at a reduced rate of VAT, so isn't affected by this cut.

[x-in-man]

Im not talking business here - Im talking about Mr and Mrs J Public and their domestic energy bills.

 

The very poeple business wants spending cash in the High Street.

 

Right, this is circular. As I said, domestic energy is already at a reduced rate of VAT, so isn't affected by this cut.

 

So why not remove it outright then? The fact it is a reduced rate does not mean it can never be looked at again.