Cost of driving goes up in UK as Value Added Tax rises to 20%
The VAT is applied to almost all products in the UK except for items like food and children's clothes. The increase means that a £20,000 car will go up by an extra £500 next January. The cost of fuel will be going up as well. Prior to the election, the previous Labor government had announced two fuel tax increases totaling 1.76 pence per liter that take effect in October and January. The VAT on fuel is calculated on top of the excise tax so the price will go up even more.
[Source: The Gaurdian | Image: AP]
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