On Wednesday, 6 July 2016 19:04:33 UTC+1, Desperate Dan wrote:
Between October 1940 and 1973 the UK had a consumption tax calledÂ*Purchase Tax, which was levied at different rates depending on goods' luxuriousness.[5]Â*Purchase Tax was applied to the wholesale price, initially at a rate of 331â�„3%. This was doubled in April 1942 to 662â�„3%, and further increased in April 1943 to a rate of 100%, before reverting in April 1946 to 331â�„3% again. Unlike VAT, Purchase Tax was applied at the point of manufacture and distribution, not at the point of sale. The rate of Purchase Tax at the start of 1973, when it gave way to VAT, was 25%.

Well you had me on purchase tax which was a war time tax based on shortage of resources which were deemed a luxury

Now of course under the VAT more than luxuries are taxed


But I have say I fail to see the point you are making? Is it that there was a purchase tax before VAT? If so that's ridiculous as Purchase tax was only luxury goods would you consider cloths luxury goods . I mean do you consider baby's prams and children's car seats luxury goods. I'm not sure with children's cars seats but I thought they were a legal requirement.






Rates below from wiki three rates standard 20% reduced 5% and zero

There are currently three rates of VAT: standard (20%), reduced (5%) and zero (0%).[3] In addition some goods and services are exempt from VAT or outside the VAT system.[3]

The following are the rates applicable to some common goods and services:[36]

Standard rated
Alcoholic drinks
Biscuits (chocolate covered only)
Bottled water (inc. mineral water)
Calendars & diaries
Carbonated (fizzy) drinks
CDs, DVDs & tapes
Cereal bars
Chocolate
Clothes & footwear (not for children under 14)
Confectionery/sweets
Delivery charges (postage & packaging)
Electrical goods
Electricity, gas, heating oil & solid fuel (business)
Food & drinks supplied for consumption on the premises (at restaurants, cafes etc)
Hot take-away food & drinks (inc. burgers, hot dogs, toasted sandwiches)
Ice cream
Fruit juice & other cold drinks (not milk)
Nuts (shelled, roasted/salted)
Postal services (Royal Mail/other licensed operators)
Potato crisps
Prams & pushchairs
Road fuel (petrol/diesel)
Salt (non-culinary)
Stationery
Taxi fares
Tolls for bridges, tunnels & roads (privately operated)
Water (industrial)


Reduced rated
Children's car seats
Electricity, gas, heating oil & solid fuel (domestic/residential/charity non-business)
Energy saving materials (permanently installed in residential/charity premises)
Maternity pads
Mobility aids for the elderly
Sanitary protection products
Smoking cessation products


Zero rated
Aircraft (sale/charter)
Bicycle & motorcycle helmets
Biscuits (not chocolate covered)
Books, maps & charts (not ebooks)
Bread, rolls, baps & pita bread
Brochures, leaflets & pamphlets
Building services for disabled people
Cakes (including Chocolate teacake, Jaffa Cakes)
Canned & frozen food (not ice cream)
Cereals
Chilled/frozen ready meals, convenience foods
Clothes & footwear (for children under 14 only)
Construction & sale of new domestic buildings
Cooking oil
Donated goods sold at charity shops
Eggs
Equipment for disabled people (inc. blind/partially sighted)
Fish (inc. live fish)
Fruit & vegetables
Live animals for human consumption
Meat & poultry
Milk, butter, cheese
Newspapers, magazines & journals
Nuts & pulses (raw for human consumption)
Prescription medicine
Protective boots & helmets (industrial)
Public transport fares (bus, train & tube)
Salt (culinary)
Sandwiches (cold)
Sewerage (domestic & industrial)
Shipbuilding (15 tonnes or over)
Tea, coffee & cocoa
Transport in a vehicle, boat or aircraft (not fewer than ten passengers)
Water (household) Exempt
Antiques, works of art or similar
Burial or cremation (human)
Commercial land & buildings (selling/leasing/letting)
Cultural events operated by public bodies (museums, art exhibitions, zoos & performances)
Education, vocational training
Financial services (money transactions, loans/credits, savings/deposits, shares/bonds)
Funeral plan insurance
Gambling (betting, gaming, bingo, lottery)
Health services (doctors, dentists, opticians, pharmacists & other health professionals)
Insurance
Medical treatment & care
Membership subscriptions
Postage stamps
Sports activities & physical education
TV licence Outside
Goods & services sold outside the EU
Goods & services supplied by unregistered supplier
Statutory fees & services (MOT testing, congestion charge etc)
Tolls for bridges, tunnels and roads (operated by public authorities)
Voluntary donations t