VAT On Newspapers Likely

According to research carried out by Oxford Economic Forecasting, the Chancellor Kenneth Clarke is likely to impose full-rate VAT on newspapers and magazines in the November budget.

The research comes to the conclusion that the UK’s deficit is too large and that the only option for the Chancellor is to raise taxes. VAT of 17.5% on books, newspapers and magazines would raise over £1 billion. Other taxes likely to happen are increasing the rate on company profits from 33% to 36% and limiting the value of personal allowances.

UK Economic Prospects: August 1993

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