VAT tax proposals could boost retailers
Commercial insurance
21st August 2009
Retailers could see growth in demand for white goods under new proposals to impose a zero VAT rate on them.
The British Retail Consortium (BRC) has called for energy-efficient devices to be offered tax-free in order to stimulate sales and ensure that the sector can "help the government achieve its carbon reduction commitments".
According to the organisation, the government should introduce a similar programme to the scrappage scheme for vehicles that are over ten years old, which has provided a significant boost to the motor vehicle industry.
Commenting on the plans, BRC press officer Krishan Rama said: "We think the VAT cut will help provide some stimulation, but what will also really help is the idea of a car style scrappage scheme."
Modern appliances use considerably less energy than older versions and a BRC submission to chancellor Alistair Darling said that the benefits of switching to contemporary white goods should be highlighted to consumers.
Retail insurance customers may be interested to note that recent BRC figures revealed a 3.5 per cent increase in total sales for July this year.
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