tax on tax?

Probably obvious, but can someone explain to me how we are charged VAT on carbon tax?, ok we have to pay the carbon tax and the 13.5% vat, but vat on carbon tax can't be right, surely.

L1011

Because that's the law. They're going to raise that revenue somehow, so the carbon tax would just be higher to compensate if they made it VAT exempt.

Same applies to excise duties.

splinter65

RoyNaire wrote: »

Probably obvious, but can someone explain to me how we are charged VAT on carbon tax?, ok we have to pay the carbon tax and the 13.5% vat, but vat on carbon tax can't be right, surely.

People were so rightly concerned about the environment that they voted for the Green Party.
Fixing the environment costs a lot of money and there’s nowhere else to get that money but from taxpayers.

Darc19

That's how value added or sales tax works.

It's added to the final selling price and whatever duties and taxes are already on it

Same in most countries.

splinter65

splinter65 wrote: »

People were so rightly concerned about the environment that they voted for the Green Party.
Fixing the environment costs a lot of money and there’s nowhere else to get that money but from taxpayers.

Fixing the environment is a ruse and just the easy excuse these days for any cash grab.

L1011

Politics to the Politics forum please, or CA as I doubt this would meet Politics standards...