Britain raises VAT sales tax to 20 percent
Britain will in January raise the VAT tax levied on goods and services from 17.5 percent to 20 percent, finance minister George Osborne announced in an emergency budget on Tuesday.
"On January 4 next year, the main rate of VAT will rise from 17.5 percent to 20 percent," he announced, sparking an uproar among opposition Labour lawmakers in the House of Commons.
"The years of debt and spending made this unavoidable. This single tax measure will by the end of the parliament generate over 13 billion pounds (19.1 billion dollars/15.5 billion euros) a year of extra revenues," he said.
© 2010 AFP