A Luxury Goods Tax
The current Cost of Living Crisis is highlighting the growing inequality that the Westminster system of Government allows to prosper. It is essential that the UK Government takes action that will reduce spiralling inflation whilst ensuring that resources are targeted to those most in need.
ALBA supports the removal of VAT from energy costs, as well as a reduction of VAT from 20% to 10%, measures that would save the average Scottish household over £2500 a year.
We urge the UK Government to ensure that when millions of people across the UK are facing a choice between eating or heating their homes, those who are least effected by the cost of living crisis should have a greater burden of taxation placed upon them when purchasing luxury goods.
A luxury goods tax should be targeted at high end designer fashion, jewellery, and cars which would result in the VAT for these items being charged at 40%, generating an additional £2.5bn for public expenditure.