UK retailers exploit vat rise
Retailers grease the wheels
My wife came home with the groceries the other day and commented that prices have risen dramatically since Christmas, with huge jumps across the board. Thing is, there is no VAT (sale tax) on food. Yes, there’s a transport cost associated with getting said food and products into the stores, but that’s hardly justification for the rises seen.
I nodded, grumbled, then pointed this article to her in the trade press:
RETAIL PLANS TO RAISE PRICES ABOVE VAT RISE
A report from accountancy group KPMG has warned that UK retailers are planning to use the VAT rise to mask even greater price rises, as they attempt to recoup margin lost from past discounting.
Source : PC Retail Jan 2011 #11
It does add “The BRC has rubbished the report” but come on, the British Retail Consortium WOULD say that, eh. As the old saying goes:
Actions speak louder than words.
People were expecting price rises and it seems the chain stores and supermarkets are only too happy take advantage of the opportunity to line their profits at our expense.
Welcome to Rip-off Britain!