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How to fix VAT

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Manage episode 517710038 series 2781477
Content provided by Institute for Fiscal Studies. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Institute for Fiscal Studies or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Why are chocolate-covered shortbread and plain shortbread taxed differently? The UK’s VAT system is full of bizarre inconsistencies that make it complex, inefficient, and unfair.


In this episode, we dive into how VAT works, why economists tend to love it in theory, and why the UK’s version falls short in practice. We explore zero and reduced rates, exemptions, myths about regressivity, and discuss how simplifying VAT could make it fairer and less distortionary.


In the fourth and final episode of our tax mini-series, Helen, Ben and Stuart look at how to fix one of the UK’s most important and misunderstood taxes.


Become a member: https://ifs.org.uk/individual-membership


Find out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts


Hosted on Acast. See acast.com/privacy for more information.

  continue reading

167 episodes

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How to fix VAT

IFS Zooms In: The Economy

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Manage episode 517710038 series 2781477
Content provided by Institute for Fiscal Studies. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Institute for Fiscal Studies or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Why are chocolate-covered shortbread and plain shortbread taxed differently? The UK’s VAT system is full of bizarre inconsistencies that make it complex, inefficient, and unfair.


In this episode, we dive into how VAT works, why economists tend to love it in theory, and why the UK’s version falls short in practice. We explore zero and reduced rates, exemptions, myths about regressivity, and discuss how simplifying VAT could make it fairer and less distortionary.


In the fourth and final episode of our tax mini-series, Helen, Ben and Stuart look at how to fix one of the UK’s most important and misunderstood taxes.


Become a member: https://ifs.org.uk/individual-membership


Find out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts


Hosted on Acast. See acast.com/privacy for more information.

  continue reading

167 episodes

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