The government is contemplating increasing the standard Value Added Tax (VAT) from 15 percent to 17.5 percent from January 1, 2009. Retailers are up in arms saying that the timing is wrong and have requested the government to extend the date.
The retailers and experts say this change will come bang in the middle of the busiest time of the year, Christmas and New Year, which will create nothing else other than chaos and confusion for the traders as well as the consumers.
They say it will be a struggle and challenge to change accounting systems and pricing in that period. The Scottish Retail Consortium is in talks with the government to work out a date convenient to all and sundry.
VAT had been reduced by 2.5 percent to stimulate spending amongst the consumers in December 2008, but again reports have crept in of some retailers not passing on that benefit to the consumers, whom it was meant to benefit.
Fibre2fashion News Desk - India
marketing@alchempro.com
