UK Consumers To Be Stung With Bag Tax
October 2, 2015 Taxation in UK
LONDON – Consumers in the UK will soon be surprised at the amount that they will pay out as part of the upcoming “bag tax” when shopping.
Earlier this week the UK consumer website money.co.uk released a new statement claiming that consumers throughout the country may pay out GBP 1.5 billion over the next ten years to the upcoming “bag tax”.
From October 5th shoppers in the UK will pay GBP 0.05 per plastic bag that they use to package their shopping.
It is estimated that over the course of a year the average shopper uses 166 plastic bags, resulting in a total bill of approximately GBP 8.32.
As the new charge on bags is not a tax, it will also fall under the scope of VAT, and the government expects that the measure could result in the collection of an extra GBP 70 million in tax revenues.
It was noted that many taxpayers may be fooled into thinking that the charge will be inconsequential, but the levy will eventually stack up to a significant amount.
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