The effect of VAT on household disposable income, 2011

The effect of VAT on household disposable income, 2011

  • The poorest fifth of households in the UK spent a higher proportion of their expenditure on goods and services that attracted Value Added Tax (VAT) in 2009/10 than in 1986.
  • Poorer households in 1986 spent a smaller proportion of their expenditure, than poorer households in 2009/10, on discretionary items which attracted VAT.
  • The poorest fifth of households in the UK pay more in VAT as a percentage of their disposable income than the richest fifth.
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