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UK Retailers pledge to soften VAT blow

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By Nick Collins

High street retailers are promising to soften the blow of the VAT rise for shoppers by reducing their prices.


Some retail giants have said they will either delay implementing the tax hike or absorb the additional cost themselves

Many nervous retail giants said they would either delay implementing the tax hike of 2.5 per cent, or absorb the additional cost themselves.

Debenhams said VAT increases would not be brought in “across the board” on Tuesday and that the higher prices would be reserved for new season products to be brought in over the coming months.

A spokeswoman said: “We will aim to keep price increases to a minimum but there are cost pressures in our supply chain, including higher VAT, which will be reflected in some of our spring summer 2011 prices.”

John Lewis said its pledge to “never knowingly” sell goods for higher prices than competitors meant it would not transfer the VAT rise on any goods to customers immediately, but added that it would bring up prices once other stores had done the same.

Marks and Spencer said it would do “everything we can” to make the transition easier for customers.

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Written by rohitkumarsviews

January 6, 2011 at 8:03 am

Posted in Uncategorized

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