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Well, most food has 0% VAT, as well as other necessities... I gather at least home energy should have a similar treatment. At least up to some level.

bryanlarsen 7y ago
How do you split food into "luxury" and "basic" foods? A 1 pound loaf of bread is "basic", a 5 pound loaf is "luxury"? What an impossible task. Far easier to put the VAT on all food and then send a rebate check to everybody on the assumption that the average food spend is "basic" and anything above average food spend is "luxury". Same thing for home energy. Heating a 1000 square foot flat is "necessity", heating a 5000 square foot flat is "luxury"....
- StreamBright 7y ago
  It is not that hard. See what is sold in a luxury store deduct what is sold in average Joe grocery stores and what you got is luxury food items.
  - greglindahl 7y ago
    Is it that easy? I suspect you'll get an objection or two about junk food from doing that. Imagine how much fun marketers will have with that kind of measure, if it's a 20% difference.
- frobozz 7y ago
  It isn't about size, it's about the nature of the foodstuff. A biscuit is basic. A chocolate biscuit is luxury. Cake is basic Meals you cook at home are basic Meals someone cooks for you (e.g. restaurant or takeaway) is luxury. (among other examples)
- gdfasfklshg4 7y ago
  Normally the rules are pretty good but there are some cracks. Google Jaffa Cakes and VAT... TLDR cake is a basic food whilst chocolate biscuits (cookies to Americans) are luxuries.
  - tialaramex 7y ago
    Sure, there are bound to be edge cases. If you're a big or tall 15 year old boy chances are your clothes are taxable because they're the same clothes as an adult and those are taxed. But if you're a petite woman you may rarely pay tax on clothes because you're fitting in stuff that was targeting a typical 15 year old girl.
  - weberc2 7y ago
    Why is cake a basic food but not cookies? Does cake mean something different in the UK?
    - frobozz 7y ago
      Biscuits are basic, but chocolate biscuits are luxury. Chocolate cakes are basic. Cake is a made up drug.
      - gdfasfklshg4 7y ago
        > Cake is a made up drug. I know that I am not supposed to comment on upvotes but I wish I could upvote this more than once. The world needs more of this series.
    - gdfasfklshg4 7y ago
      Every child deserves a birthday cake... Every married couple deserve a wedding cake... We use cake to celebrate important life events that every member of society has the right to enjoy.
      - weberc2 7y ago
        Ah, thank you for the explanation!
montalbano 7y ago
As far as I understand, the low vat on home energy is more to do with electioneering than anything else: http://www.lse.ac.uk/GranthamInstitute/news/why-the-uk-government-has-frozen-fuel-duty-again/ http://www.lse.ac.uk/GranthamInstitute/news/why-the-uk-gover...

bryanlarsen 7y ago

How do you split food into "luxury" and "basic" foods? A 1 pound loaf of bread is "basic", a 5 pound loaf is "luxury"? What an impossible task. Far easier to put the VAT on all food and then send a rebate check to everybody on the assumption that the average food spend is "basic" and anything above average food spend is "luxury". Same thing for home energy. Heating a 1000 square foot flat is "necessity", heating a 5000 square foot flat is "luxury"....

StreamBright 7y ago
It is not that hard. See what is sold in a luxury store deduct what is sold in average Joe grocery stores and what you got is luxury food items.
- greglindahl 7y ago
  Is it that easy? I suspect you'll get an objection or two about junk food from doing that. Imagine how much fun marketers will have with that kind of measure, if it's a 20% difference.
frobozz 7y ago
It isn't about size, it's about the nature of the foodstuff. A biscuit is basic. A chocolate biscuit is luxury. Cake is basic Meals you cook at home are basic Meals someone cooks for you (e.g. restaurant or takeaway) is luxury. (among other examples)
gdfasfklshg4 7y ago
Normally the rules are pretty good but there are some cracks. Google Jaffa Cakes and VAT... TLDR cake is a basic food whilst chocolate biscuits (cookies to Americans) are luxuries.
- tialaramex 7y ago
  Sure, there are bound to be edge cases. If you're a big or tall 15 year old boy chances are your clothes are taxable because they're the same clothes as an adult and those are taxed. But if you're a petite woman you may rarely pay tax on clothes because you're fitting in stuff that was targeting a typical 15 year old girl.
- weberc2 7y ago
  Why is cake a basic food but not cookies? Does cake mean something different in the UK?
  - frobozz 7y ago
    Biscuits are basic, but chocolate biscuits are luxury. Chocolate cakes are basic. Cake is a made up drug.
    - gdfasfklshg4 7y ago
      > Cake is a made up drug. I know that I am not supposed to comment on upvotes but I wish I could upvote this more than once. The world needs more of this series.
  - gdfasfklshg4 7y ago
    Every child deserves a birthday cake... Every married couple deserve a wedding cake... We use cake to celebrate important life events that every member of society has the right to enjoy.
    - weberc2 7y ago
      Ah, thank you for the explanation!

montalbano 7y ago

As far as I understand, the low vat on home energy is more to do with electioneering than anything else: http://www.lse.ac.uk/GranthamInstitute/news/why-the-uk-government-has-frozen-fuel-duty-again/ http://www.lse.ac.uk/GranthamInstitute/news/why-the-uk-gover...