To: The Government
Stop Charging Additional Hidden VAT
All of the money raised from the sale of carrier bags from retailers should go to charity. The government should not deduct 1p from the retailer as extra vat on sold bags.
Why is this important?
The plan to cut use of plastic bags is good for the environment and the government state that the 5p charge will go to charity. The reality is they are charging retailers 1p vat on each bag sold. Retailers have already accounted for their cost of packaging and vat is paid on the total price. Therefore every purchase now raises an extra 1p vat being paid directly to the government. This additional vat charge now means that non vat purchases will be liable for a 1p vat charge.