Bit Unscruplious Isnt It?

[sparkystav]

Nov last year:

I'll not be passing the 2.5% cut on for sure.............the £ has dropped against the yen (was 195 not so long ago now 149) that margins have been slashed to almost nothing

Email today:

Prolex-UK will defer increasing VAT payable on purchases made until 1/2/2010.

We have added lots more parts to the shop recently and are uploading more daily

Dave

How kind!

If only youd passed the savings on in the first place! :shutit: :shutit:

[Rob]

whoooops!

[Bazza]

VAT is a tax set by the government, defer it or not it still has to be paid at the prevailing rate !

[sparkystav]

yes but if you dont lower your prices when it drops, but then rise then when it rises its a bit off is it surely?

[Bazza]

yes but if you dont lower your prices when it drops, but then rise then when it rises its a bit off is it surely?

I see your point,

In theory the tax was lowered to boost/help the economy, as much as it was aimed at the buyer, many retailers who were struggling took a helping hand as well

[dave1]

yes but if you dont lower your prices when it drops, but then rise then when it rises its a bit off is it surely?

I see your point,

In theory the tax was lowered to boost/help the economy, as much as it was aimed at the buyer, many retailers who were struggling took a helping hand as well

I agree that the "deferrment of increase" is a con. For 13 months, so fa,r the named retailer has enjoyed an increased profit without it really looking as if he has increased prices. HMR&C will only have been recieving 15% of the take in the till but the punters have been charged the same price as when the VAT was 17.5%.

The majority of retailers reduced their prices inline with the reduced rate of VAT that they had to pay HMR&C.

The idea was to stimulate retail sales by lowering prices, although realistically the reduction wasn't the 2.5% which was perceived by a lot of the public but actually was equivalent to a saving of 1.85% at the till.