On the 4th of January 2011, PM David Cameron put his plan of increasing VAT up to 20% from 17.5% into action. The government say that it will not affect children, but will it?
VAT stands for Value Added Tax, and is paid when purchasing items in a store.
If a teddy cost £9.99 before the change, it will now cost £10.20, £0.21 more. This may not seem a lot but will eat into your wallets.
Food, children's clothing, newspapers and magazines are not put under VAT and at Duty-Free stores.
Labour Leader Ed Milliband says “it is the wrong tax at the wrong time,” with our current state in economy.
Go to http://www.bbc.co.uk/news/business-12099638 for a VAT calculator, and more info.
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