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Table of contents
- VAT assignment: paused for now, but will it be pulled for good?
- BUT FOR NOW CHORDS by Jamie Cullum @ leondumoulin.nl
- Also on TheBurg
- Most Popular.
- Watching the Grass Grow: Backyard Adventures.
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BUT FOR NOW CHORDS by Jamie Cullum @ leondumoulin.nl
Despite a boost to the main survey of household spending, the proposed methodology relied at its heart on a survey of just households. In its current form therefore, the VAT assignment proposal and methodology would bring risk and complexity to the Scottish budget, without any upside in terms of policy flexibility. One argument put forward is that what is needed is more and better data.
It remains unclear whether VAT devolution will become legally permissible.
But even if it is legally permissible, it is not clear how VAT devolution would resolve the estimation issue — we would still need to either estimate Scottish VAT revenues via surveys of expenditure, or to introduce a much more complex system of VAT reporting for businesses across the UK. And it is not clear how the Scottish Government might exercise any VAT policy competence, particularly given that several of the more desirable reforms to VAT would be more difficult to implement unilaterally than at EU-level.
The reality is that few if any taxes are perfect candidates for devolution, but VAT is surely one of the least well suited. Are there other taxes that would be better suited to devolution in place of VAT? They have been hit hard since the EU scrapped duties last year in response to a ruling by the World Trade Organisation.
Also on TheBurg
The Commission had been expected to reinstate provisional duties this month or in October and Argentine sales to the EU had stalled in anticipation. Imports of Argentine soy biodiesel, which are among the most unsustainable of biofuels, have exploded in recent months because the EU lost a trade case at the WTO, writes Kristina Wittkopp. The Commission said Argentina provided support to its industry through a set of measures, including export duties on soybeans, a biodiesel feedstock, that depressed prices to an artificially low level to the advantage of the downstream biodiesel industry.
A group representing European biodiesel producers filed a complaint about illegal state aid with the European Commission on 3 November.