UK 'facing £20,000,000,000 tax hike' to pay for pandemic
The government could raise taxes by up to £20 billion in the next budget, it is claimed.
Minister are looking raising capital gains tax and corporation tax, as well as slashing pension tax relief, according to reports.
The Sunday Times said money could be clawed back from pensions, businesses, the wealthy, and foreign aid.
It comes after the government spent billions to support workers, businesses and the NHS, for example with the furlough scheme and ‘Eat Out to Help out’.
Chancellor Rishi Sunak is considering hiking corporation tax from 19% to 24% in order to boost revenue by £12 billion next year, the report indicated.
Capital gains tax might also be paid at the same rate as income tax, under the ideas being looked at.
Pension tax relief could be ‘slashed’ under measures being considered by the Treasury to help pay for the Covid-19 crisis, the Sunday Telegraph reported.
The newspaper also said that raising fuel and other duties was also being looked at.
A revamp of the inheritance tax system and the introduction of an online sales tax was also being considered.
The international development budget could also be caught up in Treasury reappraisals due to the cost of the pandemic, it was claimed.
The aid budget has already been cut by £2.9 billion from £15.8 billion this year, due to the contraction in the economy caused by the Covid-19 outbreak.
However, the Government insists it still meets its obligation to provide 0.7% of gross national income (GNI) to international development.
The proposals were met with anger by some.
Marcus Fysh, MP for Yeovil, tweeted: ‘Tax rises are the wrong response to the current situation and Number 10 @BorisJohnson is right to resist them if the Sunday papers have the story right.
‘We need to help the economy not strangle it. These mixed messages are in themselves damaging and must stop.’
Adam Marshall, Director General at the British Chambers of Commerce wrote on Twitter: ‘Hammering businesses, entrepreneurs & investors w/ big tax rises is no way to help the UK economy restart, rebuild and renew. @RishiSunak must consider risks to our still-fragile recovery.’
Treasury sources said that they do not comment on what may, or may not be, in the upcoming Budget.
Get in touch with our news team by emailing us at firstname.lastname@example.org.
For more stories like this, check our news page.
Source: Read Full Article