Another stealth tax?
Last week I read about Gordon Brown's plan to cut 2p of the petrol tax. Then the other day, EDF announced that they would be putting up household fuel bills by an average of 20%. The Government has not spoken out to condemn this move - why?
Well, I wonder if it has anything to do with the extra amount of VAT which will be collected as a result of this increase (assuming that other companies besides EDF follow suit). As well as the VAT, we have the extra tax on profits.
If my maths are correct,then based on 10 million households (this may be a conservative figure)seeing their fuel bills go up from £1000 to £1200 per year, the government will pocket an extra £35 in Vat from each one. Multiply this figure by 10 million, and you see the Chancellor profiting to the tune of £350 million per year.