General sales tax fares badly in tax consultation
Friday 23rd August 2013, 10:24AM BST.
THE future of tax breaks such as family allowance and mortgage interest relief has been thrown into further doubt by the results of a wide-ranging consultation.
Treasury and Resources had attempted to start withdrawing mortgage interest relief in last year’s Budget, but backed away from the proposal after a fierce response from homeowners.
The consultation on personal tax, pensions and benefits presented three examples of how the tax system could be modified without raising additional revenues.
Of the 248 consultation respondents, the removal of specific tax allowances and family allowance combined with an increase in the universal tax allowance received ‘by far the largest number of favourable comments’.
Two other options – introducing different income tax rates for low and high earners and reducing the general rate of income tax while introducing a goods and services tax – were unpopular.