The Mudcat Café TM
Thread #158655   Message #3753775
Posted By: GUEST,Raggytash
26-Nov-15 - 03:21 PM
Thread Name: BS: Reducing the UK welfare bill
Subject: RE: BS: Reducing the UK welfare bill
Just as an example Teribus, you might think there is no tax on foodstuffs.

That, on paper, is correct.

However, for instance, the wagon that delivers the goods uses diesel, tax is paid on diesel. The company builds in that cost (diesel) into what they charge me.

So that tin of beans the production of which is (for arguments sake is 5p) is subject to a whole raft of indirect taxation. Tax on the production costs, tax on the transportation, tax on the profit of the company etc etc.

Thus the 45p I pay for a tin of beans goes towards all those costs and a considerable amount of that is in taxation