Is British inflation rescue?Foreign Minister considers the decline to reduce the value -added tax to 15 %

Recently, the British Consumer Price Index (CPI) has increased by 10.1%year -on -year, which has also made the country the first country to break 10 among the developed economies. Liz Truss has recently pointed out that it is considering that Britain's value -added tax rate is comprehensively reduced by 5 percentage points, which is the biggest decline in history.

According to relevant reports, the value -added tax rate is reduced to 15 %. This move saves £ 1,300 (10.48 million yuan) per year, and also helps enterprises exempt the danger of closure. Truss said he is currently discussing the problem of value -added tax reduction with relevant consultants.

Note: British VAT standards

It can be seen from the figure that the British standard value -added tax includes most goods and services in daily life.

At the same time, relevant media also pointed out that if Truss wins, the overall tax rate of VAT may be reduced by 2.5%or 5%from the current 20%standard tax rate. According to the analysis of the British Institute of Finance (IFS), the reduction of 5%will cause the overall taxpayer to spend 3.2 billion pounds per month, or 38 billion pounds for one year, and the inflation in the short term will decrease by about 2%.

In addition to reducing the value -added tax, TRUSS is also considering continuing the reduction of fuel tax. In March of this year, the fuel tax of 5 pence was reduced. At that time, the British Finance Minister said that the move was to protect the influence of the rising cost of the driver.

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