Dealers would like more help from the Government to help boost consumer confidence by reducing VAT.
Many dealers and manufacturers have put together no VAT offers to pull customers in already. However, a clear majority of 81.5% of respondents to AM’s poll show dealers would welcome a reduction in VAT as an indication to consumers that it is time to spend, although it seems just knocking a couple of points off to 17.5% would not be enough.
There was some positive news for motorists in the statement with the cancellation of the planned 3p rise in fuel duty. Businesses will also welcome the drop in corporation tax to 21% in 2014.
Comments from the poll:
- No question in my mind, 20% comes across as being a lot more than 17.5% and my guess is that a decrease would be more than compensated for by additional sales in every sector.
- The VAT and income tax rate both need cutting. The man in the street needs extra money in his pocket to start spending again.
- The UK’s automotive industry is a fair barometer of the economy and stimulating vehicle sales with VAT reductions/subsidies could only help improve the wider outlook in 2013.
- This country is being stifled by tax at point of sale.
- Back down to 15% would make a huge difference.
- The VAT rate of 20% aligns us in Europe. We need a £12,000 tax free code so the low income groups can spend on essentials and stimulate work for the under 24s.
- Unless it’s back at 15%, knocking a couple of points off will not be enough to trigger change.