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VAT attack on bus fares

20th August 1987, Page 21
20th August 1987
Page 21
Page 21, 20th August 1987 — VAT attack on bus fares
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Which of the following most accurately describes the problem?

• The Bus and Coach Council has called on Prime Minister Margaret Thatcher, Chancellor Nigel Lawson and Transport Secretary Paul Channon to resist EEC proposals to harmonise VAT rates throughout the community.

According to the BCC, loss of zero-rating on transport would lead to increased fares "at a time when the bus industry is doing its utmost to make the recent deregulation of buses work successfully". The BCC regards shortterm exemption to continue zero rating on items of basic necessity as "no more than an unsatisfactory temporary reprieve". It wants the Prime Minister and the Chancellor to press for the creation of a class for 'social goods' rated between zero and 6%, instead of the proposed 4% to 9%.

This, says the BCC, would . be an acceptable compromise which would not damage the community budget.