'The feasibility of introducing the food tax is being raised informally between civil servants, industry bodies and retail insiders. So politically-sensitive is the move that all the talks are occurring "under the radar", according to retail industry insiders. Basic supermarket groceries are currently immune from VAT, along with books, newspapers and children's clothes.
However a VAT levy on food of between three and five per cent would raise billions of pounds in tax and help reduce Government borrowings, which are expected to hit £180 billion this year.' ... Read more
