We recently heard that Tesco takes £1 out of every £7 that we spend on the high street. I have been wondering how many of those £7 are actually taxes, collected by retailers on behalf of the government. It could be nearly £3.
I have been meaning for some time to attempt an estimate of the total tax on shopping, but lack the energy & will to really make the effort. My guess is 40% - 4 out of every £10 - on the grounds that public expenditure in normal times takes about 40% of our gross national income & in an economists way of looking at things expenditure always equals income.
The rise in VAT will be noticed, & commented upon when it shows up in the price labels & the till receipts.
It is odd how many people think that VAT (& possibly excise duty) is the only tax they pay when they go shopping, unaware that on top of VAT & duty (sort of sales taxes) we contribute to the shopkeepers bill for Employers National Insurance (sort of payroll tax), Business Rate (sort of property tax) & Corporation Tax (sort of profits tax) & doubtless others as well. We may also be contributing to government or council fees& charges for services such as waste collection.
